XRP has gained a great deal of popularity for its ability to provide users with cross-border payment mechanisms through xRapid.
In addition, the platform has also realized third-party utilization through the XRP Tip Botthrough Wietse Wind and Coil, the latter of which is designed to monetize internet content on web through microtransactions.
According to Dilip Rao of Ripple, who spoke at the Global Islamic Economic Summit,
“One of the spin-offs from ripple has been a company called Coil which now allows you to stream very very minute quantities of value to a website that you’re visiting. So rather than sign up subscribers to a paid subscription that gives them full access or limited access through a free subscription, you let them pay for what they see.” He continued that the payment system can be streamed in XRP, which may be able to “change the way you monetize content,” regardless of the type of content.
He also stated that the technology aligns “very well” with the principles of Sharia law, including identifying parties to a transaction and providing clarity about the role and responsibilities of the parties to the agreement.
He also discussed that the technology may help reach various populations, stating
“If you can, with integrity, tokenize an asset wroth a million dollars, you can now have a million people share in that asset rather than necessarily one millionaire. It starts to solve for reach into the unbanked. We think therefore aligns well with all the Islamic finance principles.”
Rao also touched upon the Middle East’s attitude toward FinTech technology, stating
“I think the UAE government saying that 50% of all government transactions will be on distributed ledger technology by 200 is a fantastic way to encourage innovation, to bring FinTechs to your market and then to then build the capability locally to iterate on those solutions that the FinTechs bring to you.”
He continued, “I think generally innovation is held back by your legacy systems and I think sometimes if a legacy system is so old that you want to throw it in the dumb, you don’t have to worry so much about what you’re got to just say I’m going to dump this I’m going to go to the new shiny thing.”
In terms of legacy systems, Rao mentioned that other countries are happy with their legacy systems and do not want to let go of them. However, the Middle East has potential and from his observation, it aspires toward innovation.