- Advertisement -

Ripple is one step closer to achieving its goal of penetrating the Chinese market after American Express Co. won the approval of the Chinese government to clear card payments through the development of a proprietary network with its Chinese joint venture partner LianLian Group. Co.

According to information provided by the Chinese news portal Xinhua Net, this “victory” comes thanks to the country’s strategic efforts to open its doors to new markets in order to stimulate economic and industrial growth:

“Chinese financial authorities have approved the application by a joint venture of American Express for setting up a bank card clearing and settlement institution, a step forward in the country’s financial opening up …
Preparation for the new institution should be completed in a year, and then an application should be filed with the central bank for opening of business operation, according to a statement of the People’s Bank of China (PBOC) Friday.”

As reported previously on Ethereum World News, after signing a deal with LianLian to provide the necessary infrastructure to create a payment processing platform between the U.S., Asia and Europe, Mr. Jeremy Light commented that China was a market of particular interest to Ripple Inc.:

“China is definitely of interest, it is definitely a target,” Jeremy Light, vice president of European Union strategic accounts at Ripple, told CNBC in a phone interview. “China is definitely a country and region of interest.”

LiaLian uses Ripple’s blockchain to settle e-commerce payments and money remittances across mainland China. Besides, xCurrent technology will allow for quick and inexpensive cross-border payments.

It is important to note that with this decision AmEx becomes the first U.S Card network to have permission to operate not only in the world’s leading emerging economy but in a market that is destined to become the world’s main financial market by 2020. According to Reuters, the figures speak for themselves:

“Foreign card companies, especially behemoths like Visa and Mastercard, have been lobbying for more than a decade for direct access to China – where the number of cards in circulation is expected to rise to 9 billion by 2020 from 6 billion in 2016, according to research firm GlobalData Plc.”

With this new victory, Ripple consolidates as the most important and useful blockchain for the banking sector. XRP, the company’s token, has remained stable after a brief bullish streak that raised its price from 7k sats to 8.6k sats to then balance in the band close to 7.8k sats.

courtesy: coinmarketcap