Real Time Fiat Currency
Tired of not knowing what your conversion is?
Ripple’s distributed ledger allows for the tokenization of assets including fiat currency. To tokenize a fiat currency amount first a fiat deposit is made with a reputable exchange. This exchange then issues a token representing that fiat amount onto the Ripple network. Specifically the token is created and sent to the Ripple account of the fiat depositor. This token is similar to a bank cheque. The token can then be transferred in less than four seconds to any other Ripple user. The new owner of the token may redeem it at the exchange for the original fiat. When used with the distributed global orderbook feature tokenization becomes powerful – any user holding any tokenized currency can offer to buy or sell that currency for any other currency tokenized on the ledger or for XRP. The transaction cost for all of these operations is typically less than a hundredth of a cent. In this way the Ripple network can be used to move fiat in real-time around the globe.