Ripple has clarified a message shared with the world by its Senior Vice President of Product and Corporate Management, Asheesh Birla where he said Ripple Labs, Inc is reducing the emphasis on large treasury payments made through RippleNet’s On-Demand Liquidity (ODL), purposely to throw weight behind individuals and low-value transactions, thereby focusing on solving the increasing requirement in SME payments and remittances.
Asheesh made the comment in a post this week. There, he also foresaw the possibility of the transaction volume reducing significantly, however, he showed confidence that the outstanding benefits of ODL will make room for more transactions than RippleNet had witnessed in the past.
He also said Ripple is on the verge of opening new ODL corridors this 2020, and the firm aims to onboard new customers while also working relentlessly with the existing ones to upgrade the ODL volume in some important corridors.
Ripple’s David Schwartz Responds to Asheesh Birla’s Statement on ODL
David Schwartz responded to an inquisitive follower who wished to have a deeper understanding of the statement to allay the fear of the teeming XRP cryptocurrency followers who could not bear the increasing unsolicited analysis and speculations from the nooks and crannies of the crypto community.
To cushion the lots of anxiety, Ripple’s CTO David Schwartz said the company has always been giving preference to smaller payments than larger payments that later turned out to be divided into smaller ones.
However, some partners did not give Ripple enough rope to handle their retail payments directly until the firm was able to show that the technology was perfectly designed for such purpose.
David said treasury operations were much safer since customers won’t wait for them to be completed. He added that managing larger payments has “an obvious advantage”, the same with smaller payments.
The CTO also averred taht the benefit of lower operations “flow more directly to those who most need them”, enjoining observers to consider the “relative advantages and disadvantages of a more dollar value versus more individual payments”, especially in the cross-border payment world.
Image Credit: Twitter.
Earlier, the Ripple employee said smaller payments handling are stickier and are very important to societies today.
Ripple’s ODL in Focus
RippleNet’s On-Demand Liquidity (ODL) is gaining ground in the remittance world by using XRP token to solve pre-funding problem during cross-border remitting.
The remittance system has been adopted by big financial institutions across the world as their customers crave for a cheaper remittance solution with almost instant nature.