Caroline Bowler, CEO of Australian cryptocurrency exchange BTC Markets, says the company’s transfer and trading volume are increasing at a rapid pace.
Bowler, who previously worked in legacy financial services, says Thinking Crypto that Ripple’s XRP-powered cross-border payment solution, On-Demand Liquidity, is revolutionizing financial transfers and trade settlement. And it’s reflected in the exchange’s volume numbers, the CEO said.
“I think we have had average growth of about 5% per week since January in terms of volume coming in to XRP through our exchange. And that’s a combination of both ODL traffic and interested people in XRP. April was probably our biggest month and it is now averaging [to] about 84% growth since January. So there are many people interested in trading XRP through our platform. ”
Given the sheer size of the global remittance market, Bowler believes the potential for greater acceptance of XRP is high.
“We provide the Australian dollar for the Philippine peso. That is our first channel we take care of. And as I understand it, I think it’s a significant market – I think it was sent back about US $ 1.8 billion in personal transfers between the two countries in 2018. So there’s a big chunk out there, but it’s just the beginning of the journey for Ripple and for where XRP is going. ‘
Ripple has created ODL to provide financial institutions with an enterprise-grade method of moving money across borders with XRP.
ODL relies on crypto exchanges to accept cash and move the equivalent value abroad in XRP. Once it arrives at a corresponding exchange it will be converted back to fiat currency.
However, remittances are not immune from the economic impact of the global pandemic. Despite technological advancements in the industry with faster and cheaper transactions, people affected by the coronavirus, whether medically or through shorter hours or layoffs, will send less money home.
According to the World Bank,
“Global remittances are expected to decline sharply by about 20 percent in 2020 as a result of the economic crisis resulting from the COVID-19 pandemic and its closure. The expected decline, which would be the strongest decline in recent history, is due in large part to a fall in the wages and employment of migrant workers, who are more sensitive to job losses and wages during an economic crisis in a host country. ”