Ripple’s partnership with DeeMoney is expected to enter the second phase. DeeMoney is currently the only fintech to hold a Thai Central Bank funds transfer license.
The partnership between Ripple and DeeMoney is entering a new phase. Sources claim that the money transfer blockchain said this in a press release yesterday. The new partnership will allow Thais to remit funds to their country of origin at lower rates.
This comes as Ripple Labs Inc, which uses XRP extensively in its solutions, is expanding the network of partners across countries. This is apparently the second phase of the partnership. Sources say the Thai remittance market is fairly lucrative. Thais are expected to send over a billion dollars home this year.
Ripple and DeeMoney partnership improves efficiency of remittances
Thais are said to be relatively conservative in financial services. DeeMoney is pretty much the only non-bank institution that has special licenses for all kinds of money transfers. This places the institution in a special position.
Thais love taking care of their families. Even from abroad, they are known for sharing their family love by ensuring that remittances get home. The new partnership will develop according to the social dynamics of Thai culture.
As such, it is not surprising that the new partnership increases the efficiency of remittances. It also helps the second stage of the partnership. DeeMoney will also allow outbound transfers to multiple selected destinations. This, of course, will be based on the countries’ central bank rules and regulations.
Ripple seems to be expanding in and around the Asian Corridor. Several partnerships have already shown this. The Azimo partnership is an example. Another is its numerous partnerships with South Korean remittance companies.
Ripples’ apparent love for MoneyGram is the big fish in the pond that no one wants to talk about yet. The sheer number of investments and remittances between the two parties is enough to worry about.
However, as Ripple continues to deploy its tentacles around the world, regulatory issues are a big problem on everyone’s mind.
Cascading partnerships are a potential source of regulatory concerns
Many within compliance circles are concerned about Ripples’ partnerships with its competitors. This raised an eyebrow or two regarding the ethical nature of these business practices. It is also a gray area for blockchain companies. The adoption did not take off as many expected. Being a new industry, the blockchain space is always adapting to the realities of the global business environment. New use case scenarios should define how compliance issues will be handled.
For now, however, Ripple Labs appears to have found a new home. This house is in Asia. Asians are known to be able to adapt to new technologies more quickly than their counterparts in other hemispheres.
This has led Asian companies to be on par with their counterparts from other climates.
The partnership between Ripple Labs and DeeMoney gives the blockchain space a new mantra: Together, everyone performs miracles! (Team).
This could be the paradigm of collaboration rather than competition in the new decade.
Christopher Haruna Hamman is a freelance content developer, crypto enthusiast and tech lover. He is also a content developer for Superstar, Strategy Demigod and Standup Guy.