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Is Ripple (XRP) a digital fiat or cryptocurrency?

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The debate on whether Ripple (XRP) is a security or not still lingers. However, Ripple (XRP) is still on a ‘regulatory limbo,’ and most investors aren’t sure on whether to invest on it or not – since the fate of the digital coin hasn’t been decided yet.

At the moment, another debate has surfaced, and that is if Ripple is a digital fiat or a cryptocurrency. On the other hand, SEC hasn’t issued any statement yet on whether XRP is a security or not.

Recently, Anatoly Castella, the CEO of Elpis Investment claimed that XRP is not a cryptocurrency, rather, it is a digital fiat. Castella mentioned further that XRP does not follow the “purest interpretation of a cryptocurrency.” Castella also added this:

Ripple resembles a FinTech platform combining the best elements of fiat money and blockchain cryptocurrency. It is ‘Digital Fiat,’ not a cryptocurrency.”

Castella mentioned the fault of Ripple technology and said that the technology is not up to the standards of other cryptos like Bitcoin and Ethereum. He also stated that Bitcoin and Ethereum are a store of value asset while XRP is a digital fiat supplied by Ripple.

Is Ripple’s XRP a cryptocurrency?

A cryptocurrency is a form of digital currency that exists digitally and usually has no central regulatory authority but alternatively, makes use of a decentralized system to record transactions and manage the insurance of new units, and relies on cryptography to prevent counterfeiting and fraudulent transactions, according to the Webster Dictionary.

We do know that Ripple is a digital currency and that it has no central regulatory authority; Brad Garlinghouse cleared the air about the argument on if Ripple controls XRP or not. Ripple doesn’t own XRP; it cannot create XRP; instead, it only issues the XRP it has. It is important to know that if Ripple cuts off its operations and decides to stop, that won’t affect XRP in any way. XRP can function without Ripple because both of them are separate entities.

Contrarily, SEC Chairman Jay Clayton made a statement in June to CNBC on if a digital currency is a security or not.

Cryptocurrencies: These are replacements for sovereign currencies to replace the dollar, the Euro, the Yen with Bitcoin. That type of cryptocurrency is Bitcoin.”

There is so much to ponder on the statement made by Clayton; taking a looking at Bitcoin here, BTC transactions are very costly and if Bitcoin is used to replace the dollar or yen, etc., then why can’t a chunk of gold be used to buy goods in storehouses supermarkets. It is noteworthy to know that there is still a debate on if BTC is used as a store of value or for transactions.

Final Words

No matter how aggressive the debate is on if Ripple is a digital fiat or a cryptocurrency, one thing is clear, Ripple and XRP aim to change the financial system of the world and will help developing countries who don’t have the adequate infrastructures for money transactions. The vision of Ripple and XRP will change millions of lives and surely, that will make it prevail for long, it is not just hot air.

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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

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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SonicX
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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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