- MoneyGram CEO Alex Holmes stated in yesterday’s interview that his company is selling all XRP immediately after the transaction has been successfully completed.
- The reason for this lies in the worldwide regulatory ambiguity and the existing laws.
Ripple and MoneyGram have been working together since June of this year to realize the shared vision of real-time cross-border transactions. In a recent interview, CEO Alex Holmes revealed that MoneyGram does not own XRP.
Ripple has the best platform in the world
Alex Holmes is enthusiastic about Ripple and explained in the interview that Ripple can move digital assets in real time without the problem of pre-financing:
For the first time there is a technology available, that hast he potential to truly transform that capability and actually to move money with data which is to me just some kind of magical and this is what the future is all about.
Holmes describes that Ripple has both the best platform and the same goal as MoneyGram:
Not only do they have the best platform to do it efficiently, they also have the vision.
Ripple’s vision is to enable every person on the planet to access remittance services. Especially migrant workers and family members working in other countries should benefit from the technology. In the interview with CNN, Holmes also revealed that MoneyGram does not hold XRP and resells Ripple’s native token immediately after the transaction is completed. This is necessary because the worldwide regulations in the area of cryptocurrency are not clear.
— Julia Chatterley (@jchatterleyCNN) December 17, 2019
MoneyGram is one of Ripple’s strongest partners and operates in 194 countries worldwide. The company generated sales of USD 324.6 million in the third quarter. At the swell conference hosted by Ripple, MoneyGram recently announced that 10% of the transaction volume from the United States of America to Mexico is already being processed via the On Demand Liquidity (ODL) platform.
In addition, MoneyGram operates an innovation laboratory that explores new technologies, such as the blockchain, in an attempt to replace its legacy system. Holmes is impressed with the cost savings that can be achieved by using Ripple’s On-Demand Liquidity (formerly known as xRapid) and will continue to drive usage within its own organization.
CNF reported, Ripple acquired nearly 10% of all MoneyGram shares at the end of November and invested more than $50 million in MoneyGram. The shares were sold to the American company at a price of USD 4.10, a premium of almost 30%.
Ripple wants to push ahead with regulation
As Alex Holmes also made clear in the interview, there is no uniform regulatory framework for cryptocurrencies. Ripple has set up a subsidiary in Washington D.C. specifically for this purpose, in order to improve contact between political decision-makers and local authorities.
Furthermore, Wietse Wind has announced that XRPL Labs is working on a solution to improve the compliance of crypto projects with European regulations. XRPL Labs will solve the problem by establishing a compliance company that will provide all necessary services. The company would ensure that the company in question would meet all the requirements of European-based regulators.
However, the project is still in its infancy but could make a valuable contribution to all companies in Europe. Meanwhile, XRP’s price is following the current market trend and has fallen by -6.69% in the last 24 hours.