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Does Ripple (XRP) Have A Shot At Becoming A Global Reserve Currency?

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XRP
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The Ripple (XRP) coin and technology have proven itself over and over again as a means of facilitating almost-instant payment settlements across the globe. Recent xRapid tests indicate that the service manages to save financial institutions anywhere from 40% to 70% in transaction costs compared to using regular foreign exchange middlemen. The time spent was also reduced from 2 days to 2 minutes. How fast is that?

Now what if XRP found itself at the helm of being a Global reserve currency?

But first, let us define a reserve currency.

A reserve currency is a large quantity of currency maintained by central banks and other major financial institutions to prepare for investments, transactions and international debt obligations, or to influence their domestic exchange rate. A large percentage of commodities, such as gold and oil, are priced in the reserve currency, causing other countries to hold this currency to pay for these goods.

So how does XRP become a reserve currency?

To begin with, and from the definition above, we realize that a reserve currency is maintained by central banks. One thing to remember is that Ripple has partnered with 40 to 50 such global central banks which are testing Ripple’s products. The recent entry into the list is the Saudi Arabian Central Bank. All these banks can settle debts and make payments to each other once they are part of the ‘Internet of Value’ network provided by Ripple. This means that whenever one country wants to buy a commodity from another such as oil or even help with some humanitarian effort, all they have to do is send some XRP. In 3.3 seconds, the funds will be available on the other side of the globe.

A second reason why XRP has a shot at being a global central bank reserve currency is the fact that the technology behind Ripple has worked seamlessly for over 4 years. Also to add is that there have not been any forks to solve any so-called software issue. All transactions on the XRP ledger will continue being fast (3.3 seconds) and cheap ($0.0004 per transaction) as usual. There is also buzz of the XRP smart contract platform being developed to automate some functions.

The third, and not necessarily the last reason why XRP can become the global reserve currency, is the amount of XRP available that makes it highly liquid and available. The current circulating supply is 39.189 Billion XRP with a total supply of 99.992 Billion XRP. When compared to estimates of the total of USD currency floating around the globe as of 2013 ($1.2 Trillion) we can pretty much plead a case for XRP being a global reserve currency.

In conclusion, the adoption of XRP by the global central banks already in partnership with the project can prove to be the catalyst in making the digital asset a preferred reserve currency by the same banks due to the reasons outlined above. The only thing that can stop this, is the need for such countries to continue with business as usual in terms of having the USD, GBP, Yuan, The Euro or The Japanese Yen, as their core reserve currency.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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crypto credit cards
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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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