Ripple's senior staff, led by CEO Brad Garlinghouse, reportedly met with the Central Bank of Brazil to discuss "institutional issues." The online meeting brought together senior central bank executives and the team of Ripple in an amazing discussion that lasted several hours. Although not many details have been released, it is rumored that the main agenda of the meeting is the possibility of exploring Ripple's remittance service for clients in Brazil.
Brazil is currently one of the friendliest cryptocurrency countries in Latin America and also a promising remittance industry. According to the data of tradingeconomics, total remittances increased to approximately $ 306 million in January 2020, the highest since 2009.
Although this has dropped significantly to $ 204 million in February, probably due to the COVID-19 pandemic. However, the industry was projected to raise up to $ 275 million by the end of the first quarter.
Only traditional and expensive means of transferring funds, such as SWIFT, currently dominate the remittance industry in Brazil, although Ripple already works with some banks in the country. This may be the reason behind the central bank's decision to consider Ripple's payment network that settles payments across borders in just seconds for just pennies. Ripple's popularity with existing financial institutions in the industry can be easily explained by its technology's ability to operate on existing networks like banks rather than displace them.
The Ripple office in Brazil had the intention to create a market base in Brazil and Latin America in general. With this possible collaboration with the central bank, Ripple's market base can finally see real expansion, and XRP, which is used to provide liquidity, can also see wider adoption.
The president of Brazil's central bank, Campos Neto, is known to be a blockchain enthusiast, so this may be a big step in getting Ripple closer to his goal of making cross-border remittances as cheap and without problems in Brazil.