According to the announcement by SBI on Monday, the development marks the first time XRP cryptocurrency will be deployed on a cross-border e-commerce website in Japan. The BTC and XRP transactions will be settled on the SBI VC Trade Co. Ltd, a cryptocurrency exchange owned by the SBI Group. The platform, according to SBI, will use appropriate security methods in order to prevent money laundering and terrorist financing through crypto transactions.
Furthermore, SBI revealed that it is presently monitoring and scrutinizing its business partners to verify that they follow Anti-Money Laundering (AML) and corporate regulations. SBI stated that aside from adding BTC and XRP settlements, it would continue to support other significant projects that serve the demands of its expanding client base.
Japan’s first #XRP payment support on the e-commerce site by SBI Motor Japan. They export about 5,000 used cars annually, mostly to Africa. #BTC will be the other crytpo-asset accepted. @yoshitaka_kitao keeps putting XRP utility in play.https://t.co/MYfcofN3XE
— ☀CryptoEri 196k+ Followers (beware of imposters) (@sentosumosaba) May 9, 2022
According to the announcement, the move stems from the growing demand for cryptocurrencies in developing countries, particularly in Africa, where people still lack access to basic financial services. According to SBI, over 1.7 billion people worldwide still lack access to basic financial services and have been shut out of beneficial activities because of it, as shown by a 2017 World Bank survey.
This move is seen as a positive step forward for Ripple, which has been struggling with a lawsuit filed in 2020 for selling unregistered securities in the form of XRP. The lawsuit has dealt a devastating blow to XRP and its holders, who have seen some platforms cease support for digital currency. Ripple CEO Brad Garlinghouse recently expressed his optimism that the long-ongoing lawsuit with the United States Securities and Exchange Commission would result in a favorable outcome for the blockchain-based global payments firm.
According to Aliasgar Merchant, developer relations engineer at Ignite, the adoption of XRP outside the United States is a good indicator that a lawsuit in the United States “shall not deter a technology from adoption.”
He went on to say that governments all around the world are seizing any possible moment to embrace cryptocurrency, and “if they can implement security and technology together, that’s like a marriage in heaven.” Merchant also added that “a revolution in financial technology is much needed, especially in developing countries. This initiative will make sure developing and underdeveloped countries get good financial opportunities.”