Kuwait's second-largest Sharia-compliant bank will use blockchain technology to facilitate instant international transfers.
Kuwait Finance House KFH has joined RippleNet, the enterprise blockchain from Ripple, to facilitate international money transfers. Formally, to start operating the service, KFH must receive approval from the Central Bank of the country, but bank representatives are confident that using RippleNet will allow them to offer clients cross-border payments that are highly efficient, secure, transparent and have low fees. Kuwait financial house KFH has a strong leadership position in banking. Today it has 485 branches, employing more than 15 thousand employees in seven regions. The bank's assets are $55.52 billion, and the amount of deposits is $34.97 billion.
Today, it is not known whether the cooperation concerns other Ripple products, such as xRapid (a real-time liquidity solution) or xCurrent (commercial software for settling fiat money transfers).
Such cooperation became possible due to the recognition of Bitcoin and its technologies as complying with Sharia law, halal (permissible in Islam). The April findings on such an important issue opened the Middle East market to digital currencies. Kuwait has become the fourth Arab League country to join the use of Ripple technology. Last year, RippleNet's client list included RAK Bank, the national bank of the emirate of Ras Al Khaimah, and the forex firm UAE Exchange.
In addition, the Saudi Arabian Central Bank, The Saudi Arabian Monetary Authority (SAMA), became the first central bank in the world to implement xCurrent (commercial software for settling fiat money transfers). In early May of this year, the Omani bank BankDhofar joined RippleNet.
Ripple, as a semi-centralized payment network, is seeking to conquer its niche in the cryptocurrency market. Offering regulated financial companies convenient products and controlled payment gateways of the Ripple network that are easily regulated in most jurisdictions.. Today, the RippleNet network is used by more than 100 financial institutions, including banks, money transfer operators and other financial companies using the product for clearing and conducting international transactions in real time.
Ripple is expanding its international influence and after successful partnerships in China, India and Brazil, it is confident is developing the Middle East market.
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