Ripple (XRP): Since the advent of internet 3.0, blockchain technology in 2009, the economies, enterprises, corporations and industries have taken a step to understand how they can better the transaction business. Many governments, financial experts and the public have also opposed the whole idea of cryptocurrencies all together naming it a bubble, scam or whatever else. The fact that this technology has been with us for the last decade, gives reason to believe in it or at least understand it.
In the past decade the crypto arena has seen an exponential surge in the overall number of tokens. Over 1600 tokens are currently trading on over 15000 markets offering an array of uses and problem solving in as many sectors of economies as possible. Only a few of these will survive then test of time, as it was seen in 2017 where over 600 tokens failed or were labelled scams. Closely looking at the table, very few of these blockchains offer any real life application to real life problems.
- Ripple blockchain is unique and offers real world solutions
To create both short term and long term cryptocurrencies requires a real solution to a real problem, exactly what happened to the 3 largest coins according to market capitalization; Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP). BTC is the pioneer cryptocurrency, ETH was the first crypto to be used on a smart contract, and Ripple focused on the costly nature of international institutional payment systems.
These unique features have kept them in the position of power without any danger of dropping below. Ripple however, seems to be the best situated to take over as the “USD of cryptocurrencies”. The digital asset’s, partner Ripple Labs has partnered with the biggest financial institutions to test their technologies. Since JP Morgan took up the idea, Santander Bank, MoneyGram, Western Union and even Starbucks are finding a way to implement the system.
- XRP leads in regulatory adoption
Legally, XRP is dealing with everything that is coming towards it and its partner company, Ripple Labs Tech. This will allow the coin to be more legally compliant which would drive up XPR in the long term. The former chairman of Commodity Futures Trading Commission (CFTC), Gary Gensler, proposed late in April that the regulation body, SEC should take a close look at Ethereum and Ripple as they classify as “non-compliant securities”. The law however will not affect Bitcoin given that no ICO was offered.
However, XRP was offered through a public sale (ICO) in 2014 and then no laws classified ICOs as securities. According to a Haynes and Bone lawyer, it’s highly unlikely they’ll go back and impose some onerous burdens.
“It would be very unusual for a regulator to go back in time and say ‘you should have thought three or four years ago when you started that this was a security.” Lawyer from Haynes and Bone.
- Ripple Labs gaining support in UK
The UK parliament, summoned Ripple Lab Tech executive on Tuesday this week to grill them on the integration of Ripple in the banking systems. This summoning proved pro blockchain with tough questions being asked and quality answers being provided. The main issues discussed was how XRP was going to deal with its huge volatile nature, the huge amounts that Ripple Labs hold and the influence it will have on the currency in general
Director of regulatory relations in Ripple (XRP), Ryan Zagone, stated that the connection between the XRP currency and Ripple Labs was merely through ownership of a large stock and nothing else while also urging the UK parliament to consider the adoption of blockchain in the future.
“XRP is open source and it was not created by our company, so that existed as an open source technology. We created a company that was interested in modernizing payments and then began using that open-source tech to do…But there’s not a direct connection between Ripple the company and XRP.” said Zagone. “I would just urge the committee that we do not repeat the mistakes that have been made over and again of getting blinded by the word innovation, particularly relating to financial products.”