What is In the World is Going On with XRP?
Ripple has been around a while now, but where is it going?
Ripple has been around a while now, but where is it going?
I’ve been aware of XRP for a long time. I even hold some.
For a long time I didn’t really understand why this interesting coin that had pre mined ALL of its own initial crypto before launch, was having a fuss made about it online.
Years ago, I thought to myself — XRP is just corporate America getting in a little pump and dump crypto action while the getting is good, while trying to create a centralized currency and see what happens.
XRP turns out to be so much more than that.
What Makes XRP stand out?
Let’s take a look….
Consensus Algorithm: XRP operates on a consensus algorithm called the XRP Ledger, which is different from the proof-of-work (PoW) system used by Bitcoin. In PoW, miners compete to validate transactions and add them to the blockchain. This process consumes significant computational power and time.
On the other hand, XRP uses a consensus protocol that does not require mining. This makes transactions on the XRP Ledger faster, more energy-efficient, and cost-effective compared to PoW cryptocurrencies.
Ethereum has recently joined the club, having switched from proof-of-work (PoW) to proof-of-stake (PoS).
Fixed Total Supply: Unlike Bitcoin and many others, where new coins are continually created by mining or staking protocols, XRP has a fixed total supply of 100 billion tokens, half of which is already in circulation. The entire supply was pre-mined at the inception of the Ripple protocol.
This pre-mined supply ensures that there is no inflationary pressure on XRP’s value and provides certainty about the token’s scarcity.
Strategic Partnerships and Adoption: One of the key moves that underline the significance of XRP are the strategic partnerships established by Ripple, the company behind XRP, with major financial institutions and payment providers.
These partnerships demonstrate the growing recognition and adoption of XRP within the traditional banking and financial industry. Ripple’s collaborations with banks and financial institutions worldwide highlight the potential for XRP to streamline cross-border payments, enhance liquidity, and introduce efficiency into existing financial systems.
The adoption of XRP by established players in the financial sector signifies a shift towards embracing digital assets as a means to improve operational processes and reduce costs associated with cross-border transactions.
XRP offers a solution to the traditional banking systems by providing a faster, cheaper, and more reliable alternative for cross-border transactions.
By leveraging XRP’s capabilities, financial institutions can optimize their payment infrastructure, reduce processing times, mitigate risks associated with correspondent banking, and enhance the overall efficiency of cross-border transactions.
ISO 20022 | ISO20022
ISO20022www.iso20022.org
The adoption of the new ISO 20022 standard: the emerging universal global payment network aligns with XRP’s capabilities, as the protocol can seamlessly integrate with these systems. This standardization streamlines cross-border transfers and enhances interoperability between diverse financial platforms, amplifying XRP’s value proposition for users and institutions.
Compliance with Regulatory Standards One of the key factors that contribute to the significance of XRP in the financial sector is its compliance with regulatory standards. Ripple, the company behind XRP, has proactively engaged with regulatory authorities to ensure that XRP operates within the legal frameworks governing digital assets.
By collaborating with policymakers, Ripple has sought to address concerns related to anti-money laundering (AML) and know your customer (KYC) regulations, privacy, and consumer protection. This compliance with regulatory requirements enhances the legitimacy of XRP as a trusted digital asset within the financial ecosystem.
Stability and Predictability: Another crucial aspect of XRP’s significance is its stability. Unlike some cryptocurrencies known for their price volatility, XRP has exhibited relatively stable price behavior. This stability makes XRP an attractive option for individuals and institutions seeking a reliable store of value or a medium of exchange. The predictability of XRP’s value trajectory can instill confidence in users looking to transact securely and efficiently without being exposed to extreme price fluctuations.
Additionally, the stability of XRP’s value can reduce the risk associated with cross-border transactions, offering a level of consistency that traditional financial systems may lack.
XRP News and Current Events: Ripple’s partnership with a leading Malaysian digital payments provider known as MoneyMatch aims to leverage Ripple’s OnDemand Liquidity (ODL) service, which utilizes XRP, to enable faster and more cost-effective cross-border payments. MoneyMatch is utilizing RippleNet, Ripple’s global payments network, to facilitate seamless and efficient money transfers. https://www.fintechfutures.com/2018/10/malaysian-moneymatch-completes-first-ripple-based-transaction/
Another notable partnership is with Novatti, an Australian payment technology company, and Ripple. Through this partnership, Novatti will use Ripple’s technology to provide new cross-border payment services to its customers, further expanding the adoption of XRP as a bridge asset for global payments. https://www.novatti.com/wp-content/uploads/2022/06/Novatti-to-issue-Australian-Dollar-backed-stablecoin-on-XRP-Ledger.pdf
Tranglo, a cross-border payment company, announced support of the use of XRP for remittances in Southeast Asia and is another significant development that highlights the growing adoption of XRP in the region.
https://tranglo.com/press/tranglo-enables-ripples-on-demand-liquidity-service-across-its-25-payment-corridors/
These partnerships and integrations signify a growing trend of financial institutions and payment service providers recognizing the benefits of leveraging XRP and Ripple’s technology for efficient and cost-effective cross-border transactions, ultimately driving the adoption of XRP in the global payments landscape.
It might be a good time to load up on a bag of XRP.
While I do not expect a giant value swing when/if it becomes adopted as a payment standard, but I do expect the value to increase.
Thank you for reading!
Until next time….
Onward and Upward Everybody!
-Chris
Automated Income Lifesyle w/ Chris Morton YouTube
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