By utilizing the blockchain platform, the bank will be able to offer cross-border money transfers securely and instantly. By joining the network, the bank is participating in a worldwide blockchain network that includes more than 100 financial institutions such as payment providers and banks.
However, many details surrounding the rollout are have not yet been disclosed. For example, it’s not known if the bank will use Ripple’s xCurrent, which allows settlements in fiat currency, or Ripple’s xRapid, which uses XRP for liquidity.
The joint venture means that KFH customers will be able to benefit from fast payments with the added value of increased efficiency, security, and transparency that blockchain technology provides. Bank customers will also be able to enjoy lower fees for international wire transfers.
KFH still needs the approval of the Central Bank of Kuwait before KFH is able to launch the new Ripple-enabled service.
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