Abu Dhabi: The Arab Monetary Fund (AMF) and Visa, announced today the signing of a Memorandum of Understanding (MoU). Under the terms of this MoU, Visa and Buna (The Regional Payment Platform owned by the AMF), will set the foundation for mutual beneficial interoperability and a solid partnership that aims to enable additional rails of money transfer across the two systems, supporting the growth and efficiency of cross-border payments between the Arab region and the rest of the world.
Buna and Visa will collaborate to offer their network of participants and member banks respectively, a quick, efficient, cost effective and secure channels to execute cross-border payments in Arab and International currencies, enabling diversified pay out options.
Buna, is a cross-border payment system owned by the Arab Monetary Fund, aiming to enable financial institutions and central banks in the Arab region and beyond to send and receive payments in local currencies as well as key international currencies in a safe, cost- effective, risk-controlled, and transparent environment. Buna offers participants modern payment solutions that comply with international standards, principles, and compliance requirements. Thanks to its cross-border payment system Buna contributes to exploring and strengthening opportunities for economic and financial integration in the Arab region and supporting investment ties with the global trading partners. Buna welcomes the inclusion of all banks that meet the criteria and conditions for participation, primarily the standards and procedures of compliance aspects.
Buna goal is to enable financial institutions and central banks in the Arab region and beyond to send and receive payments in local currencies as well as key international currencies in a safe, risk-controlled environment. Buna offers participants modern payment solutions that comply with international standards, principles, and compliance requirements.
Have we forgotten that the Kingdom of Saudi Arabia (central bank) and The Saudi Arabian Monterey Authority (central bank) have signed deals with Ripple?
This PDF Titled – Financial Inclusion in the technology-led globalization age. Cross-border retail payments and prospects for the Arab region. We can see Ripple mentioned 30 times, along with XRP mentioned 4 times.
As for the second model, the Ripple’s
DLT-based solution xRapid, that uses crypto-asset XRP to enable
remittance services providers to lower foreign exchange costs and
ensure faster settlement.
Santander One Pay FX uses Ripple’s xCurrent blockchain-based software
solution to enable its clients’ cross-border transfers (Ripple has (at least) two
blockchain solutions for cross-border payments, xCurrent and xRapid, the main
difference between them being that the former uses fiat currencies, whereas the
latter uses XRP, the company’s native crypto-asset). xCurrent is described by
Ripple as the first global real-time gross settlement (RTGS) system across
RippleNet network of banks and payment providers. xCurrent enables reduction
of processing costs through: (i) increased STP rates; (ii) elimination of SWIFT
fees; (iii) lowered reconciliation costs (as a result of instant confirmation and
real-time liquidity monitoring), among others. Ripple estimates cost savings per
payment by 60 percent (See Ripple’s xCurrent solution overview available here).
At the moment, OnePay FX is only available to Santander’s clients in Spain,
Poland, Brazil, and the UK, and is free-of-charge (The transaction may still be
subject to receiving banks fees). SBI Remit, the largest money transfer in Japan,
in collaboration with Siam Commercial Bank (SCB), is also using Ripple’s
xCurrent to facilitate remittances between Japan and Thailand.
Originally posted by Mathew Liny
Arab monetary fund using Ripplenet for financial inclusions
Buna is to support Arab banking using #blockchain
— The light shines in the darkness (@MatthewLINY) April 29, 2020