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.
For the latest cryptocurrency news, join our Telegram!
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.
Image courtesy of Pexels
How Can Foreigners Get Loans in Singapore
Foreigners who are residing in Singapore and looking for financing could do so in the form of a payday loan. It is good to find out that you can borrow the money from a reputable lender and that the interest rates are low enough for it to be a viable option. Online lenders that specialize in doing business in the country can certainly help one. These online companies are not only reliable, but their service is fast.
At the same time, many cannot afford a high standard of living. Many individuals cannot afford essentials, such as a car or a house. It can be difficult for the majority of the working class to scrape through on their basic salary.
What defines a foreigner in Singapore?
A foreigner in Singapore means that you are not a permanent or natural citizen there. As a foreigner, you will not be holding a Singaporean passport. The rules can differ a little for foreigners and residents. Singapore, being a multinational hub, houses many foreigners within the city. Foreigners come to Singapore for the many attractions it offers. Many people come to Singapore for Work-related purposes. A lot many also come for vacations or to visit a friend or a relative. Some foreigners come with a plan to move to Singapore permanently, attracted by their lavish lifestyle. Singapore also…
Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
Cryptocurrencies are already making a huge difference around the world. Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…