Earlier today, a South African-based fintech firm, Xago, announced to the world the launch of its custom-built XRP exchange and Ripple gateway in the country.
According to information reaching our desk, the XRP only exchange connects to and uses Ripple’s network to exchange, send, and receive Ripple’s default virtual currency, XRP.
The Xago XRP exchange will only allow individuals who have a South African bank account to exchange, send, and receive Ripple’s XRP coin using the South African Rand and not any other fiat currency.
Going by the information that is available on our desk, the south African remittance platform, Xago, developed the XRP only exchange to create liquidity of XRP in the southern African nation. The platform aims to act as the market-making network for crypto fans and firms who wish to utilize and trade with Ripple’s default currency, XRP, and Ripple’s Ledger.
Ripple’s network is a viable option for Xago to realize its mission due to its efficient and effective settlement between wallets. Over the years, RippleNet has managed to create a good name for itself in transferring value between exchanges with little or no exposure to volatility.
Today we are incredibly proud & excited to announce the launch of our custom built #XRP only exchange. This is the first step on our journey to helping make #Payments in Africa faster, efficient & affordable: https://t.co/jPUfC7IV7J #XRPcommunity #xrparmy @Ripple @bgarlinghouse pic.twitter.com/ep7YB9mm6X
— Xago Technologies (Pty) Ltd. (@Xago_io) October 9, 2019
Apart from increasing awareness of Ripple’s technology in Africa, the launch of the XRP only exchange marks a significant milestone that is sure to see the demand and price of XRP surge upwards.
Also, the South African-based fintech company, Xago, is looking to debut a settlement switch and an API product that will allow South African firms to accept Ripple’s default currency, XRP, in their businesses. Xago intends to make this a reality by utilizing the Ripple network that enables cross-border settlements, replacing the need for card technologies in retail.
Xago’s take on Ripple (XRP)
During an interview with BitcoinKE, the Chief Commercial Officer of Xago, Debra Roodt, said that the current transaction speeds of Xago’s XRP only exchange match those of Ripple’s network even though the custom-built exchange employs two-factor authentication technology on its platform for all actions except for buying and selling.
According to information made available by Roodt, the custom-built XRP only exchange will also use users’ mobile numbers to act as identifiers contrary to using email addresses. By doing this, Xago is ensuring safe system accessibility to its users, reducing compromising issues, and heightened security. Consumers will be able to purchase goods using only their cell phones and their cell phone numbers, avoiding traditional payment rails.
The Xago cell phone number-based identity system is developed to connect user cell phones with the blockchain and retailers in one seamless experience. By charging lower transaction fees, the Xago platform is positioned to compete in the high stake retail environment enabling clients to come up with new and innovative products that will ultimately benefit the end consumer.
As a south African remittance platform, Xago was founded by Sonya Kuhnel (COO), Jurgen Kuhnel (CEO), and Mark Chirnside (Chairman) in 2016. The fintech company believes blockchain technology and more specific RippleNet has a significant role to play in transforming the payment sector.
While speaking on why they chose to focus on Ripple and XRP, Xago CEO Jurgen Kuhnel said:
“The industry is grateful for Bitcoin’s blockchain technology in managing to solve the double-spending problem by introducing the P2P payment solution without the need for a trusted 3rd party through mining. However, RippleNet managed to take this one step forward by building a faster and more cost-effective decentralized ledger that can compete with existing clearing and banking technologies.”
According to information reaching our desk, Xago is waiting for the XRP only exchange to realize sufficient liquidity to debut its settlement switch, which is positioned to connect retailers through the firm’s existing hardware and software platforms.
What this means is that where Xago will be in use, retailers will not need to use card networks — thanks to Ripple’s blockchain technology and its default cryptocurrency, XRP.
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