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

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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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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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