Unlike many other coins that focus on the individual user, Ripple’s “XRP” coin brings blockchain technology and cryptocurrency to the outdated worldwide banking system. If you have ever tried to send money internationally, you know what an old-fashioned, lengthy process it is. Flashback to me stuck in France with eight Euros in my pocket and my travel credit card lodged firmly in an ATM. The night before a bank holiday. Wish I’d had Ripple then.
Here’s how it works, in a very petite nutshell: bank customers log into their accounts through their bank’s website or app. They decide how much XRP they want to send to someone in another country and designate who it’s going to. Skipping a system that takes two to four days to complete, Ripple’s network sends the information to the receiving bank and in the designated account instantly (in five to ten seconds). The technology traces the funds from starting point to destination with certainty of delivery, and because it’s bank-to-bank, not customer-to-customer, no customer information touches the network.
This is a great investment option for people who send money across international borders… or who know people who travel and might need a quick bit of cash, so they don’t end up eating cold McDonald’s fries for dinner AND breakfast while they wait for Western Union.