FlashFX CEO: Ripple’s ODL requires ramp-up time – SWIFT will stay

  • In a new interview, Ripple’s longtime partner, FlashFX, spoke about the introduction of On Demand Liquidity.
  • FlashFX’s CEO explained that Ripple’s ODL technology needs time to gain acceptance and establish itself as a competitor to SWIFT.

About two weeks ago, Ripple announced the launch of a new On Demand Liquidity Corridor in partnership with FlashFX. The new corridor to Australia was tested for over a year before going live. FlashFX announced the launch of the brand new FX payment solution to improve foreign exchange trading in Australia.

Using On Demand-Liquidity (ODL), FlashFX uses the XRP token to gain liquidity. The company’s goal is to provide its users with greater transparency and near real-time processing for cross-border payments. Nicolas Steiger, CEO of FlashFX, commented on the launch of the new partnership with Ripple:

We are excited to be part of the evolution in international payments processing. It’s about time that consumers and businesses saw a meaningful change in how money is sent across borders. The service provides an alternative for Australians who want to send a payment faster and cheaper than banks currently provide.

FlashFX is the first Australian digital currency company to receive the Australian Financial Services License (AFSL) from the Australian Securities and Investments Commission (ASIC). According to the Australian Transaction Reports and Analysis Centre (AUSTRAC), Australia processes $50 billion in cross-border payments annually.

The introduction process of ODL and acceptance takes time

In a new interview with Nugget News, Steiger announced new details about the partnership with Ripple and the use of on-demand liquidity. FlashFX’s CEO noted that the two companies have been working together for four years. Ripple has supported FlashFX since receiving the AFSL. Steiger also explained that FlashFX has always believed in the “Ripple story” and the benefits of XRP for his company.

Steiger further described how ODL helped his company connect the growing Flash FX wire transfer service with overseas partners, including banks and payment processors. Comparing ODL transfers with a traditional system, Steiger noted that traditional transfers led to slow results and higher costs.

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However, acceptance of XRP transactions and ODL was initially difficult. Many companies preferred the well-known and therefore still used SWIFT. The CEO of FlashFX also noted that although ODL adoption may take some time, “SWIFT will always be there”. Despite the low use of the ODL corridor, Steiger felt that most users were familiar with XRP, the digital currency, and claimed that the digital asset had real value. In his commentary on the introduction of ODL he said:

It’s not that overnight the banks will jump on this. There’s a risk appetite there is number of different things from a regulatory perspective that they can do but I think you know looking back the last 12-18 months it’s has improved continously.

Also, Flash FX is planning to expand the ODL service to Japan. Flash FX could take this step with the help of SBI, RippleNet member in Japan, by 2020 Q1.

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About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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