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Here is how IMF is pushing Ripple and Bitcoin towards the mass adoption

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The big announcement on whether cryptos such as Ripple (XRP) will be declared as securities or not hasn’t been finalized. As of now, we can expect the big news to be announced in next couple of weeks, though. Although, the legal foundation of the world’s financial system is working tirelessly to make things better; Ripple, on the other hand, is partnering with them and other financial regulators out there.

The main problem right now is not declaring Ripple as a security, but if Ripple’s technology can be legally used for securities, commodities, stocks, bonds, and dividends – and whether Ripple’s technology can revolutionize the world’s transactions.

The world has $294 trillion financial assets, and part of it is the global market capitalization which has risen from $34 trillion to $69 trillion – this entails the amount of money that moves on a daily basis, and of course, we can now process these transactions with Ripple’s technology.

IMF is ‘bullish’ on cryptocurrencies

The IMF (International Monetary Fund) has recently expressed its support for cryptocurrencies such as Bitcoin and Ripple. IMF’s CEO, Christine Lagarde, stated that cryptos do not impose significant threats to the present-day fiat currencies.

Largarde sees cryptocurrency to be, “volatile, risky, energy incentive and because the underlying technologies are not yet scalable enough.”  Christine believes that the defects of cryptocurrency can be corrected effectively.

She further laid more emphasis on the future preference for digital currencies by saying:

Why would citizens hold onto virtual currencies rather than those physical dollars, physical euros or physical sterling’s. Because it may one day be easier and safer than obtaining paper bills, especially in remote regions and because virtual currencies could actually become more stable.”

The head of IMF had added further,

“Citizens may one day prefer virtual currencies since they potentially offer the same cost and convenience as [there could be] no cash, no settlement risks, no clearing delays, no registration, no intermediary to check accounts and identities.”

Moving forward, Lagarde declared the intentions to expand the Fund’s High-Level Advisory Group on Finance and Technology, to uphold the international organizations. Th team formed for the initiative has 19 members in it, with Ripple’s Ryan Zagone and Chris Larsen. Lagarde said.

The group will provide advice to help IMF staff deepen its understanding of FinTech issues. It will work closely with the IMF’s Interdepartmental Working Group on Finance and Technology, which was established in 2016, to study the economic and regulatory implications of developments in the area of finance and technology. Such a system (Ripple) would stand a good chance of disrupting entrenched players (e.g., Swift), according to the IMF.”

IMF has had several meetings on blockchain technology, and most of these meetings had Ripple’s Ryan Zagone participating in them – which shows that Ripple is working hand-in-hand with IMF. Ryan Zagone and Charles Larson are also collaborating with other big financial companies.

It is worth noting that IMF’s support for cryptos such as Ripple is enormous. That said, the foundation that Ripple has built is strong and steady, and one of the main reasons why there hasn’t been an increase in XRP price is since Ripple is working on laws that govern the technology for communities, technologies, etc. And yes, the SEC case against Ripple’s XRP being a security is also holding its price back. Still, “Ripple is the only company with enterprise-ready solutions in distributed ledger technology.”  

The U.S Federal Reserve

The U.S Federal Reserve has a Faster Payment Task Force Steering committee – with Ripple the only Distributed Ledger Technology platform in the committee. The U.S Federal Reserve has declared that its primary aim is to let the market choose the way out that justifies the market share.

There have been 22 proposals that were submitted to the U.S Federal Reserve, but only 19 made the Steering Committee list. Ripple on its own is currently making sure that it becomes the leading solution or the way out that justifies the market share.

The Federal Reserve further issues the 6 “effectiveness criteria” for the future of RTGS networks, which are efficiency, safety and security, governance, speed, legal, and ubiquity. Lately, Ripple has been working to match with this criteria.

Nevertheless, a report by the U.S Federal Reserve in December 2016 talked about the Interledger Protocol, further stating that the Interledger Protocol would stir the use of the DLT-based platform for cross-border transactions. Financial companies such as Unicredit, Standard Chartered, Westpac, CIBC, among others that are of the Global Payments Steering Group, “will oversee the creation and maintenance of Ripple payment transaction rules, formalized standards for activity using Ripple, and other actions to promote implementation of Ripple capabilities as our network continues to grow,” according to Ripple’s governance advisory board, which means that this Global Payments Steering Group has Ripple in mind.

Final Words

Ripple technology is faster and cheaper. For payments to settle on Ripple’s network, it only takes four seconds. For Ethereum and Bitcoin, it takes 2 minutes and 1 hours – 3 to 5 days for traditional systems. Ripple’s technology is the future of cross-border transactions and IMF is pretty confident that Ripple can take the world to the next level. And ultimately, the trust the at International Monetary Fund has in Ripple and Bitcoin, will help the cryptos in mass adoption.

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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.

Image courtesy of Maxpixel.net

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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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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