Ripple which has gained attention thanks to Ripplenet’s quick transactions speed and low costs for cross-border transactions has grown quite successfully in the Middle East.
According to a speech in Dubai, Ripple’s Global Head of Infrastructure Innovation, Dilip Rao revealed that rapid development is taking place for Ripple in the Middle East Region.
Ripple has confirmed an office in Dubai before the year 2018 ends. The new office will help Ripple maintain it’s operations efficiently with close to 200 financial institutions already signed with Ripple in the region. Partnerships such as Saudi Arabia’s largest Islamic bank Al-Rjhi and Kuwait Finance House mean Ripple has already established itself as a game-changing company for financial institutions.
One of the primary reasons for expanding into the Middle East is to help ease the cross-border payments of migrant workers who pay hefty fees along with delayed transaction times.
Ripple made the right decision in choosing Dubai as the ideal place for its office in the Middle East. One primary reason is the Emirates Blockchain Strategy 2021, which is to capitalize on the Blockchain technology to transform 50% of government transactions into the Blockchain platform by 2021. Another reason is the presence of most banking institutions in Dubai which will further be drawn into Ripple’s technology.
The Middle East boasts of a majority of Muslims, and thus Ripple being claimed as Sharia-compliant means the scope is broad in this region. The Sharia law is defined as the Islamic law which is a religious law forming part of the tradition of Islams.
Ripple is noted to be Sharia compliant because of the parties involved and the contractual obligations to avert an unnecessary breach of trust. As Rao explained-
“If you can, with integrity, tokenize an asset worth a million dollars, you can now have a million people share in that asset rather than necessarily one millionaire. It starts to solve for reach into the unbanked. We think therefore aligns well with all of the Islamic finance principles.”
Image Source – Pixabay
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