Jurgen Kuhnel, the CEO and Co-founder of the South African-based money operator Xago has reechoed the reason why his company chose to use Ripple amongst the multitude of money processing technologies across the world.
Kuhnel, in a statement published today, said the swift speed of XRP while executing transactions ‘virtually eliminates the volatility introduced by cryptocurrencies.’
The CEO addressed cryptocurrency, especially Bitcoin, as a great innovation with self-governing network, and for the first time in history, the banks and central banks’ global legacy ledger system is been substituted by a decentralized ledger that does not require trusted 3rd parties to perform transactions.
However, the CEO said the technology still fall short of important features like speed and cost. Only 4-7 transactions can be processed on Bitcoin’s blockchain, and 10mins confirmation time with huge transaction fee is required.
Kuhnel continued, saying before the transaction is completely executed, the amount sent would have changed due to Bitcoin’s wild volatility.
The CEO furthered that unlike Bitcoin, RippleNet technology carries out 1500 transactions per second with validation time of 3–5 seconds and low fees.
Kuhnel said the ability to carry out 10’s of thousands of transactions on Ripple ledger within a second makes the technology attractive for high throughput retailers.
Jurgen Kuhnel who is also the founder and CTO of Bitsure said the usage of RippleNet becomes more prolific when utilizing XRP for settlement of transactions. Kuhnel said it helps eliminate the need to prefund account.
“Now imagine a large business like Moneygram operating in multiple countries across the globe. They need reserves of several currencies with a lot of them quite exotic. Therefore Moneygram is exposed to massive currency fluctuation and has to have large amounts of reserve accounts dormant and waiting on transactions,” Kuhnel continued.
“You only need reserves from your local currency because buying XRP at the time of transfer and immediately selling on the foreign exchange within seconds eliminates the reserves required by the FX company as described above.”
Kuhnel said this is why Xago built an XRP gateway with a retail platform for customers. The CEO said research confirms that it takes almost a day and 9.5% cost to transfer money across the border in Africa.
Xago payment platform, established in Africa, helps to slash friction and transaction costs while executing transactions by eliminating traditional payment rails. Xago says it aims at offering customers in the retail and remittance industries secure, fast and low-cost financial services.
Xago has since pledged loyalty to XRP. In an interview session with NewsLogical, CEO Kuhel, in his statement recognized the practicality of Bitcoin but said Xago sees more future in XRP and the crypto asset solves the company’s problem more than any other.
Xago Co-organizes meet-up to Teach South Africans How to Arbitrage with XRP
Xago has said it will be educating interested customers in South Africa on how best to trade and arbitrage XRP on the exchange.
The Cape Town-based fintech company declared the update in line with its commitment towards generating liquidity for XRP in South Africa. Xago aired that it will be offering the educational service in partnership with Blockchain Academy, a cryptocurrency and blockchain technology training and consulting firm.
Also South Africa-based Blockchain Academy alongside Xago will co-host an XRP meet-up in Cape Town, South Africa. Xago said the meet-up will be focused on teaching people how to trade and arbitrage with the remittance guru coin XRP.
The CEO of Xago, Jurgen Kuhel, will also be at the meet-up. Attendees will have the opportunity to learn from the CEO. At the event, Kuhel will summarize what arbitraging means in crypto-trading.
He will also educate people on how to explore the advantage of arbitraging and using XRP. The event is to take place on Tuesday, November 12, 2019 between 5:30 PM to 7:30 PM South Africa Standard Time (SAST).