International Money Exchange (Intermex), one of the most prominent remittance companies in the world, made the announcement that it won’t be using Ripple its cryptocurrency XRP for its core markets like Mexico.
The news comes quite a big surprise, seeing that in early 2020, Intermex closed a partnership with Ripple. The company’s executives conducted a conference in order to respond to the question of how Ripple and XRP will be used in the future.
Intermex Focuses Mostly on Latin America
The partnership between Intermex and Ripple was announced at the beginning of last month. Many speculated that Intermex, which focuses mostly on Latin America, will integrate XRP into their services in Mexico and other countries in the area for faster remittance payments. However, that doesn’t appear to be the case. This is what Intermex’s CEO, Robert Lisy said about the matter specifically:
“Ripple will not be an answer for places like Mexico. We’re very proud about the relationships we have there . . . we have very tight relationships that strategically setting plans and objectives with those players. And so you won’t really see us leveraging Ripple in our core markets.
I think it will bring us more growth in newer markets in places where we’re exploring going into ancillary products.”
Ripple’s Supporters Are Frustrated
Ripple supporters from Latin America are frustrated seeing that Intermex has rapidly grown as a company after they went public back in 2018. In 2019, it had moved over $16 billion, and not to mention, expanded its services to Africa and Canada. This means the future looks bright for Ripple’s RippleNet and XRP while things are moving ahead, but not yet for South America.
The Remittance Market is Flooded by Cryptocurrency
Intermex and other similar companies are wise to try and explore the use of blockchain technology and cryptocurrencies, as they can be revolutionary for international transfers in terms of speed and cost.
According to estimates, 15% of remittances from all over the world involve crypto, not to mention a rise in this percentage is expected in the upcoming years, even if crypto for remittances takes place mostly in the developing world, where people are looking for an alternative to national fiats, which are more and more unstable.
Crypto enthusiasts have been long saying that blockchain assets like Bitcoin (BTC) are going to close remittance companies. This doesn’t mean Intermex and its competitors shouldn’t look for other alternatives too.