For a long time, there has been a debate whether the use of the Ripple protocol and XRP token can actually result in direct savings for the financial institutions and banks or not. Recently, however, Royal Bank of Canada confirmed that Ripple and XRP tokens can save banks and financial institutions not just time but also money. According to it, it can save fees up to the extent of 46% in each and every transaction. This is a significant amount of money for any bank as well as the financial institution.
Royal Bank of Canada has been using not just the ripple protocol but also the XRP ledger as well. That is why it has been able to experience these advantages first hand.
Royal Bank of Canada confirms the savings on using ripple and XRP token:
Royal Bank of Canada has been using not just xCurrent protocol but also xRapid as well as xVia. Thus, it is been using most of the solutions which are provided by ripple. After using the solutions for the past few months, it has come to the conclusion that it can easily result in savings of 46% on each and every transaction. This is a huge amount of saving for the banks as well as financial institutions. This can, in fact, be game-changing for the entire banking and finance industry as well.
Moreover, the Royal Bank of Canada in itself has 16 million clients as well. Thus, the adoption of the Ripple protocol by such a single bank can also increase the usability of the ripple protocol significantly. Moreover, it will increase the credibility of the ripple protocol as well as the XRP token as well. This is one of the main reasons why such authentication by a large client is actually beneficial for ripple. This is especially true when times are becoming tough with IBM launching such a similar protocol with the help of Stellar lumens (XLM).
In the coming few months, it remains to be seen whether the other clients of the ripple protocol experience similar savings or not. If indeed, they are also able to experience similar savings, it will be difficult for banks as well as financial institutions to ignore the ripple protocol in such a case. They will have to adopt the ripple protocol if they want to increase their bottom line. That is why, all eyes will now be on the other clients of ripple in order to confirm whether the usage of the Ripple protocol, along with the XRP token can actually lead to a significant amount of savings or not.