A platform that is designed to allow users to convert their fiat into XRP with low fees and without the need for an exchange could launch soon. Wietse Wind, who is an XRP programmer, launched the beta version of the XParrot platform recently. The platform now operates on an invite-only basis. To use, you will only enter your wallet address. You can then wire the money you want to convert into the platform’s account. The fiat is converted to XRP tokens and deposited into the wallet address.
Beta users claim that the whole process is done in just a few hours. The fee is quite low at just one EUR. One user said that you place your wallet address and wire money to the account. A confirmation code is sent to your number once transactions are processed. He even posted an image of the confirmation message.
Another user claimed they were curious to see how the service would work. He claimed to be from Germany where the financial system was heavily regulated. Thus, making something like this work might be a huge challenge.
Another Twitter user claimed it was just a permutation of SEPA/IBAN payment. He claimed that due to EU efforts, it had become easy to send money in just a day. He explained that the money would go to the platform’s account and be sent to the user’s address as XRP.
Thus far, there has been no word on the regulation needed or licenses they need to launch on a large scale. Besides that, there is no word on how the platform will work in other nations globally such as the US. In the US, money transmission laws are quite strict.
Wietse Wind has been quite busy of late. He is quite active. Besides this project, he also plans to integrate the XRP Tip Bot to the Coil a platform for crypto donations. Besides that, he is working on another project that will ensure the bot comes to Alexa by Amazon.
The entire process will not involve any human activity. Users define al aspect include the wallet where the money is to be deposited. The IBAN system in Europe has had mixed results. In some cases, it is fast while in other cases it takes almost 8 hours. In other cases, it can take Friday to Monday. This will depend on the bank you pick.
Why Is It So Simple?
This is made possible by the latest regulations in the EU on banking known as PSD2. Banks have to make accounts able to connect to other banks and financial services freely. This encourages competition and reduces monopolizing customers by banks. Thus, XRParrot can connect to EU banks via the IBAN system and a phone number.
Wietse Wind will limit deposits to just €500 a month. However, he will increase the limits in future if the transfer amounts are within the limits of the law. This will also depend on the partners that XParrot works with such as Gatehub.