The technology firm Ripple which is based in the US announced on November 14 that it has partnered with MSF Africa. This agreement is supposed to "streamline [MSF Africa's] real-time mobile payments for their consumers across 35 nations."
As part of the partnership, MSF Africa, a prominent fintech company on the continent, would utilize on-demand liquidity (ODL), Ripple's cryptocurrency offering.
Ripple concluded the news of the partnership through a blog post and claimed this collaboration was a “win for financial inclusion in Africa” and claimed that ODL is helpful to “markets that often struggle with liquidity sourcing.”
The group continued by saying that as the partnership between both organizations, which operates 800 payment corridors across the continent, develops, "the entire area stands to reap the benefits of financial inclusion."
On this partnership, the CEO of the mobile financial solution, Dare Okoudjou said
“MFS Africa’s mission is to make borders matter less when it comes to payment within, to, and from Africa. We’re delighted to advance this mission through our partnership with Ripple to enable fast, secure, and low-cost remittances, at scale.”
In order to "amplify our [MSF Africa's] influence on consumers and businesses on the continent growth in a new economy," the CEO further explained that his organization's relationship with Ripple is its first attempt to use blockchain technologies.
Given that a large portion of the population of the country lacks access to banking, this strategy change makes a lot of sense for the African market. More people use mobile money than banking for payments.
The ODL expansion makes it possible to use the Ripple network in the majority of worldwide locations. There will undoubtedly be greater utility as a result of the company's network expansion. Depending on how the Ripple-SEC legal struggle turns out, things could take off in 2023.
Ripple Is Fighting A Legal Battle
The expansion took place as Ripple's domestic legal battle in the US is still ongoing. The company is being sued by the Securities and Exchange Commission for selling XRP tokens as an unregistered security. On 22 December 2020 SEC filed a legal case against Ripple for selling XRP tokens to raise the capital value.
The $1.3 billion lawsuit effectively symbolizes a debate over whether XRP belongs in the category of security or a commodity. The SEC holds the opposite opinion to that put out by Ripple as Ripple claims itself a commodity. If SEC succeeded in winning the case, the XRP will be considered a security rather than a currency in the United States.
According to the filed complaint, XRP didn’t only structure and promotes the XRP for sales, but the co-founder founders Larsen and current CEO, Garlinghouse also carried out personal, unregistered transactions of XRP totaling over $600 million.
According to the SEC website, the complaint claims that the defendants violated the federal securities laws' registration requirements by failing to register their XRP offers and sales or to abide by any exceptions therefrom.
This battle is going on for almost 2 years now, in starting Ripple didn’t respond to the complaint. But later clarified about this on the Twitter platform. Now it's to see where all this will go.
Know about Ripple
Ripple ledger is a Private/Consortium Blockchain network that is used for financial institutions. It was launched in 2012 and is known more because of its native token XRP token. XRP is ranked no 7 on the Coinmarketcap. And is trading at the value of ₹31.24 with a market cap of ₹1,567,116,230,350 (as of today).
It is quite popular among the crypto community because of its low gas prices, high speed, scalability, and environment-friendly behavior (comparatively).
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