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Is Ripple (XRP) a digital fiat or cryptocurrency?

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Ripple XRP

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

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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