Ripple has tried to expand its presence around the world and has provided alternatives to payment problems with modern banking infrastructure. The real-time gross settlement company has facilitated cross-border payments for various lanes to reduce the cost and time of remittances and has expanded this service. However, does Ripple think of India when it comes to remittances?
According to data provided by the world economy, in 2018, remittances represented 2.9% of its gross domestic product [GDP]. Outflows from India reported a record $ 18.75 billion in March under the liberalized cash transfer program [LRS]. Under the LRS, resident Indians are allowed to transfer up to $ 250,000 per fiscal year to various acceptable reasons or capital account transactions or both. However, due to the lack of technical assistance for remittances in the country, the World Bank has predicted the sector will drop by about 23% in 2020 to $ 64 billion.
Navin Gupta of Ripple in South Asia in a recent interview highlighted this problem and said that India should never be left behind in terms of unique technology and innovation. The LRS was set up in 2004 but before that, sending money abroad was illegal, which put many citizens in the dilemma of helping their loved ones or family members. Gupta stressed the need for guidelines for the protection of customers with regard to cryptocurrencies.
He added:
"I think having clear government directives, compliance documents, rules and regulations always protects people better than having a vacuum cleaner."
The lack of regulation has not only prevented businesses from entering India, but has also limited people from delving into cryptocurrencies. Country remittances could however be an ideal corridor for Ripple, because according to Gupta, India may have to wait for the arrival of an ODL corridor, due to a lack of framework.
“I believe that what we would like to be is a regulated exchange, because in this regulated exchange, the rights of consumers are protected. Ensure that the exchange has a robust security system so that no user or cryptocurrency security is compromised. "
