Mitsubishi has agreed to test the usage of XRP by moving real funds over RippleNet, with the objective of making cross-border payments more convenient, which in turn will improve the capital efficiency of corporate groups.
Mitsubishi Corporation (MC) made the agreement with RippleNet on Monday, May 14th, along with MUFG Bank, Ltd. (MUFG Bank), Bank of Ayudhya PCL (Krungsri), a Thailand-based subsidiary of MUFG Bank, and Standard Chartered Bank (Standard Chartered).
According to Mitsubishi’s announcement of the agreement, “this pilot test is the first result of a joint project between the companies to improve cash management with a real-time, multi-currency, multiple-bank platform. The test will be carried out by MC between the accounts of MC’s subsidiaries in Thailand and Singapore, under the Bank of Thailand Regulatory Sandbox Framework. Based on the results of this pilot test, the companies will work towards commercializing this high-speed, transparent and traceable cross-border payments solution and collaborate on a variety of innovative projects.”
If – and this is a big if – Ripple does become useful to MC and other large corporations, then it may be a big win for those who currently own the coin, which dropped 2% to $0.67 today. The thing is, this agreement is just a test, and in no way guarantees that Mitsubishi will actually follow through with using XRP. As with most news regarding XRP, it’s a lot of hype and a little substance.
For those who aren’t familiar with Ripple or the cryptocurrency frenzy, by using this technology big companies like Mitsubishi and Amazon (who many have speculated may enter a partnership with Ripple) can quicken transaction times while also lowering the cost.
It’s worth noting that Nissan currently owns a majority (34%) of Mitsubishi Motors after the Renault–Nissan–Mitsubishi Alliance was formed. Like Saab, Mitsubishi had a dark outlook after a failed partnership with Dailmer AG, but, unlike Saab, it was able to secure financial backing thanks to this alliance. That said, MC still owns a percentage of Mitsubishi Motors, and we suppose there’s a possibility that Nissan and Renault may begin using Ripple if MC thinks it’ll be an efficient and effective business tool.
Maybe crypto currency is just a fad, an idea that ends up going nowhere. Or maybe it really is the future. Mitsubishi has a tendency to pioneer prospective business ventures, as it did back when the Eclipse, and, a little later, the Lancer Evolution waere canceled, which was a result of the company focusing on electric vehicles and crossovers/SUVs. It even resurrected the Eclipse nameplate as a CUV dubbed the Eclipse Cross. Taking that into consideration, one could say that MC has strong instincts when it comes to survival.
This isn’t the first and only instance of cryptocurrency or blockchain technology crossing paths with the automotive industry. In fact, some manufacturers have been using blockchain technology to make their vehicles more secure, but we’ll have more on that for you next time.