Digital payment network Ripple announced on August 18 that forex company Travelex will use RippleNet’s ODL to support cross-border payments between businesses using Ripple’s XRP token. It also noted that Travelex Bank was the first bank approved by Brazil’s central bank to operate exclusively in the foreign exchange sector.
Bom dia! Brazil is open for Ripple’s On-Demand Liquidity with Travelex—our first LATAM bank partner—and the first bank approved by the Central Bank of Brazil to operate exclusively in FX. We’re excited to bring crypto-native solutions to 🇧🇷https://t.co/G6U8nh9jIY
— Ripple (@Ripple) August 18, 2022
While other Latin American companies such as Banco Rendimento, Remessa Online, Frente Corretora, and Banco Topazio have used RippleNet services, the acceptance of Brazil’s central bank’s approval makes this the first time a Latin American bank has used ODL, Ripple said.
Travelex will first enable these cross-border payments between Brazil and Mexico, with plans to open up more payment avenues in the region and with more use cases tailored to the needs of the business.
The news comes as the Brazilian government approved their first “Bitcoin law” in April 2022, aiming to create a framework for regulating cryptocurrencies.
Brazil is also in the process of implementing a central bank digital currency (CBDC). However, the decision was controversial, with economist Fabio Araujo suggesting that CBDCs could halt bank operations and impose other restrictions on citizens’ access to money.
Ripple CEO Brad Garlinghouse said Brazil’s adoption of a crypto-friendly regulatory framework and the increased interest of institutions in digital asset solutions have made the country a great place for ODL.
Garlinghouse added that with more than $780 billion in payments flowing into Brazil annually, using Travelex’s ODL service will make cross-border payments much more efficient.