The company Ripple in his blog explained how the issue of liquidity will be solved by xRapid.
Liquidity is the most important part of the transaction and allows you to understand how easy it is to transfer money without a significant increase in cost. According to the Financial Times, liquidity is the ease of conversion of the instrument into cash for future use. xRapid is a new solution to this important need of the financial market.
xRapid uses XRP to ensure liquidity. By simplifying transactions in real time and lower costs for currency xRapid reduces risk and unlocks the full potential of cross-border payments for corporate customers stated in the post Ripple.
For cross-border transactions, the Nostro system is a long and expensive way of achieving liquidity. Therefore, cryptocurrencies are a good replacement for Nostro accounts, by reducing the cost and increasing liquidity for all cross-border transactions.
Cryptocurrency is a universal currency, as it allows you to change any payment to the local currency. XRP is one of the successful implementations of such decisions. For example, bitcoin can spend more hours on payment transactions and thereby to limit their transactions to 16 per second. XRP, in turn, can handle up to 1,500 TPS (transactions per second), which corresponds to one of health major payment networks such as Visa and other card networks. Transactions in XRP faster and hence the sender is protected from risks of volatility and quickly receives the funds. Lower transaction rate of bitcoin does not allow it to be a digital asset that may be appropriate for more stable exchange.
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