According to a new publication, the Universal Postal Union advocates for the usage of crypto assets recommending XRP and the distributed ledger technology of Ripple as a solution to cut costs and time associated with money transfer. The management staff of UPU has managed to produce one of the most compelling publications the world has ever seen in regards to the potential use cases of virtual currencies by postal offices across the globe.
According to crypto pundits, the publication is anything but not boring and dry. The report is information-packed, mind-blowing, and full of knowledge that Post Offices around the world should consider adopting. The Addressing staff of the UPU reveals the truth that Addresses are much more than locations where Posts deposit parcels and letters.
Addresses are an underlying global network that allows their owners to be connected to everyday life, allowing them to receive public and private services, participate in democratic processes, be participants of the formal economy, allowing them to have legal identities, and participants of the information and communication age among other capabilities.
The Universal Postal Union (UPU) is a specialized United Nations agency that deals with the coordination of postal policies among member countries, along with the global postal system. The UPU is an intergovernmental body that is tasked with the mandate to set rules and rates for cross-border mail delivery.
Since the commencement of the new millennium, Posts have been experiencing technological disturbances of their primary business. At the same time, technological modernization has been part of their strategy to conceive new products that align Posts to meet the demands of the digital economy by spawning its efficiencies.
A popular crypto Youtuber and Ripple (XRP) supporter, Eri published a video yesterday. In the video, she explains why White Paper by Universal Postal Union boasts clear case to use Ripple DLT and its cryptocurrency XRP.
Potential use cases of virtual assets (especially Ripple) by Postal Offices
As accurate as the phrase “change is inevitable” is, postal offices around the world need to stay relevant in the changing market. At present, UPU is looking into the role blockchain technology, distributed ledger technology, and virtual assets can play in the postal industry in ensuring they offer efficient delivery services to its customers.
With the steady growth of cryptocurrencies and their technologies, several Posts around the globe are experimenting the use of distributed ledger technologies in providing financial and logistics services.
According to WrathofKahneman, an avid Twitter user and crypto pundit:
“The UPU recommends crypto technologies and more so Ripple XRP, as a solution to financial inclusion around the world. Recently, we saw Japan’s post bank joining SBI Ripple Asia with signs indicating India and Egypt are next in the line.”
According to information that was made available in the publication, there are three use cases for virtual assets by the Post.
Use Case 1: Inexpensive, Near-Instant Inward Remittance
The first use case for cryptocurrencies is to offer a secure, inexpensive, instantaneous transfer of funds through the crypto technology. The low cost and speedy attributes of cryptocurrencies and blockchain technologies such as Ripple XRP make crypto an ideal choice for remittances.
According to the World Bank, the average cost of sending money around the world is 7 percent, a figure that is much higher than the 3 percent figure that was set in the SDGs for 2030. Recently, Ripple (XRP) conducted a pitot study remitting funds from the US to Mexico. The findings showed that the foreign exchange tariffs were reduced by over 40 percent with the payment being finalized in a record time of about two minutes.
The UPU findings prove that the use of Ripple’s distributed ledger technology could be the future of remittances since the service offers improved transparency and accountability.
Use Case 2: In the Management of Direct Money Transfer Projects
A recent finding by the Better Than Cash Alliance (BTCA) shows that direct cash transfer to recipients serves a prearranged objective. However, the mode of transmission dramatically affects how the funds are used; the transfer medium should be flexible are beneficiary friendly.
Three UN agencies that deliver more than half of the world’s humanitarian money support programs agree there is a need to ensure humanitarian monies reach their expected recipients minimizing corruption cases and fraud.
The integration of Postal Offices with crypto technologies such as Ripple’s distributed technology can provide the actual beneficiaries to get their monies either in their bank accounts or their mobile phones.
Use Case 3: Facilitate Government-to-Person (G2P) Settlements
According to statistics by the UPU, 87 Posts globally avail checking and savings accounts to their customers. Combined, these postal operators hold over 1 billion accounts that are often owned by the marginalized and vulnerable communities of the populations, serving as an efficient channel for G3P payments such as salaries, pensions, benefits, and subsidies.
Around the world, many governments have embraced mobile money solutions as the best way to transfer G2P payments to beneficiaries. Transacting these G2P settlements through the distributed ledger technology of Ripple adds another layer of accountability and transparency for the remunerations, ensuring the end of wastage and corrupt dealings.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.