Ever since cryptocurrencies appeared in the financial landscape, they have proven to be highly efficient instruments to transact with. An average operation with a cryptocurrency usually lasts just a few minutes, an issue that the banking sector has been definitely fighting against for so long, and that’s without including the extremely high fees the sector charges per transaction, another problem cryptocurrencies have managed to solve.
In this matter, one of the cryptocurrencies that have shown remarkable advances with respect to cross-border payments is without any doubt Ripple (XRP). Through Ripple Labs, the company has created a package of solutions integrated on products such as xCurrent and xRapid, products that attack specific problems of the industry such as privacy of the data, costs, speed, and liquidity.
Ripple has managed to collaborate with several bank institutions across the globe; is currently partnered with at least 100 banks, and the truth is, this seems to be just the beginning. Ripple has stated its next primary goal is that major bank entities would fully adopt their product xRapid at the end of the year, a fact that, of course, puts Swift, the current cross-border payment platform in use, in not the best position.
Let’s see how this rivalry goes!
The first touché of Ripple
Back in April, Ripple made an audacious move by partnering with one of the largest banks in the world, Banco de Santander. The agreement was to collaborate in the elaboration of a blockchain-based service that would allow the users of the bank in the UK, Spain, Poland, and Brazil to make transactions using different currencies.
The strategic alliance represented a breaking point for Swift as Banco de Santander is one of the major bank entities in the world. And if we count the signings the company is doing with financial institutions every day; the current payment platform has for sure everything to lose.
As a matter of fact, Ripple has managed to ally with at least 100 banks to the date, among we can find, of course, the mentioned Spain bank which now appears very happy with the results of the collaboration with Ripple.
Regarding that, the head of operations, technology, and innovation of the bank, Ed Metzger, stated the results were very positive, he said,
“We have had very positive feedback and good take-up. It gives the customer much more certainty over how much money will arrive in the destination account.”
The blockchain has demonstrated to be a much cheaper, quicker, and efficient technology when it comes to treating cross-border payments, so this can definitely mean a check warning for the correspondent banking system Swift.
The Swift’s Reply
As it was expected, Swift decided to counterattack and made some improves in its messaging platforms, at the time that started as well the testing of the blockchain technologies to give Ripple a taste of its own medicine.
However, as the test that involved 34 bank entities from all around the world concluded, it all appears like it would be tough to fulfill the scalability goals using a blockchain system, which proves, of course, the skepticism the company keeps regarding the cutting-edge technology.
Regarding this, the head of banking at Swift, Harry Newman, said that the,
“Blockchain technology is not straightforward to scale and it is not yet appropriate to do so”
He continued and commented that he understands the correspondent banking model is an old-fashioned invention of 1998, but when it comes to speed, Swift has already managed to do payments in just a matter of minutes using the Global Payment Innovation system.
“If you don’t have money on the blockchain you are just doing a different kind of messaging system for correspondent banking”
The main issue in the crypto sphere and its solution
As we know for a fact, the primary concern of the crypto community and the focus of many of the detractors of the sector focuses on the volatility cryptocurrencies have shown during its existence. In this matter, a more prominent commented solution has been the creation of the dubbed ‘stablecoins,’ an invention that may not be so far from its inception.
The idea is to build up a cryptocurrency token backed by fiat currencies deposited at central banks across the globe. As of the moment, Circle, the cryptocurrency, and payment group based in Boston have already started a project to create the USD coin, the first crypto of the ‘stablecoin’ type.
Although this project is very much unlikely to solve the situation between Ripple and Swift, it may offer a solution for one of the most significant issues of the industry.
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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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TRON Partnership Involves Cloud Computing
It has been almost an entire week since Justin Sun, the founder of TRON (TRX), announced a new big partnership for this cryptocurrency. His Twitter announcement did not provide a lot of information, except for the fact that the TRON partnership is with an industry giant worth tens of billions of dollars.
— Justin Sun (@justinsuntron) October 12, 2018
Even so, the entire crypto community started speculating about the new partner’s identity. Soon after the announcement, a new rumor emerged, claiming that the identity of an unnamed corporation was uncovered. According to the rumor, TRON’s new partner is none other than Baidu, one of the largest tech giants of China, which also represents this country’s largest internet search provider.
Baidu is often viewed as China’s version of Google, and if the rumors of a partnership with this company turn out to be true, this will be a big game-changer for TRON.
However, in days following the announcement, new reports started coming in with claims that the partnership will not revolve around blockchain technology. Instead, ODaily reported that the alleged partnership between TRON and Baidu will be focused on cloud computing. The report claims that TRON will be purchasing computing resources from Baidu.
Will Ripple (XRP) advocacy hike affect bitcoin dominance of China?
Currently, China is leading in Bitcoin mining industry by far, second to none for bitcoin mining power. Literally, it’s contributing over 70% of the network’s hash rate (a term that is used in describing the total processing power of a blockchain network). But how Ripple fits in here and what it has to do with that? We’ll talk about that a bit later below, let’s cover some in-depth facts about China’s dominance over Bitcoin first.
It’s a near-complete dominance by China on the BTC mining grid that has made it responsible for mining a majority of circulating bitcoins. A Beijing-based company, Bitmain Technologies, is highly responsible for extracting the significant part – more than half of the globe’s bitcoin, and alone, it has approached 50% of the total hash rate more than once.
The fact that China is controlling a majority of Bitcoin hash rate, clearly tells that it has the power of manipulating or merely destroy the bitcoin network if it gets enough support should it decide to take such a move. Therefore, this has led to serious concerns among countries including the US that China might get an edge in this cryptocurrency industry and possibly becoming a potential threat.
China is the biggest manufacturer of Bitcoin as well as cryptocurrency mining equipment. The reason behind the massive growth of mining farms in the country is because of cheap electricity bills.
Furthermore, the country has adopted several…
Ravencoin (RVN) Surges Following Binance Listing
While most cryptocurrencies today still remain unstable and at the edge of falling into the red, there are some coins that are doing significantly better. One such coin is Ravencoin (RVN), which has surged by over 26% in the last 24 hours.
Ravencoin came to be as a hard fork of Bitcoin and was inspired by a popular book series-turned-television programme, Game of Thrones. The coin’s developers decided to make Ravencoin an open-source project that provides users with the ability to declare assets on their platform. The platform itself is decentralized, transparent, and secure.
Just as Game of Thrones’ ravens are used for spreading the news and truth, Ravencoin hopes to become a carrier of truth regarding the ownership of assets on the blockchain.
Ravencoin’s main use case is for performing P2P transfers, while it prioritizes security, autonomy, user privacy, and control. Additionally, as a coin fighting for truth and transparency, it also stands against censorship.
Ravencoin got listed on Binance prior to MainNet launch
Following the last week’s announcement that Ravencoin is getting officially listed on Binance, the world’s largest cryptocurrency exchange ba trading volume, Ravencoin experienced a large price surge. At one point, the surge took the coin’s value up by over 31%. At the time of writing, however, the coin is still growing, with an increase of 26.15% in the last 24 hours.
Getting listed on Binance has brought Ravencoin to the top…
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