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With Regulators Paying Close Attention to Ripple, Can XRP Still Achieve Cross-Border Payments?

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At this point, the case of whether XRP should be considered a security or a currency has become quite common. Even though Ripple has been working hard to prove that there is no relations between XRP and a security, class-action lawsuits have been issued to Ripple over claims that XRP is a security managed and controlled by Ripple.

The regulators are paying close attention

Obviously, this has brought a lot of attention to Ripple from regulators. While on one hand, the company continues to illustrate that its XRP does not even qualify to be a security, most onlookers and XRP holders are left with unanswered questions on the other hand.

Already, the SEC has declared that Bitcoin and Ethereum are not securities. However, the verdict is still out on other coins like XRP. Given that Ripple’s XRP is the third largest cryptocurrency, everyone is waiting to see the SEC’s ruling.

Ripple owns most of XRP tokens and is the main issuer of the tokens. Meanwhile, William Hinman (head of Corporate Finance Division at the SEC) says that a commodity qualifies to be a security as long as it’s issued by a centralized third party and bought by investors with an expectation of profit.

How is XRP performing with respect to its agenda amid regulatory attention?

Well, these uncertainties and contradicting opinions on the matter have introduced a lot of confusion among XRP holders. However, the biggest concern for XRP holders still remains to be the performance of XRP and whether XRP is still on track towards achieving cross-border payments soon.

Apart from XRP, Ripple is also known for its other products and services including xCurrent, and xRapid. All these services compliment Ripple’s overarching agenda to provide on-demand liquidity, and fast cross-border payment services using XRP token.

The general expectation among XRP holders is that XRP eventually gains value and achieves adoptability once banks and commercial institutions start using the XRP to facilitate payment. In this regard, David Schwartz, the chief cryptographer at Ripple, believes that there is still a long way before banks will start to use decentralized ledger technologies like Ripple to settle cross-border payments.

This comes at a time when Ripple has already made tremendous achievement in terms of partnerships with over 100 banks and financial institutions across the globe. Most holders of XRP remain high spirited hoping for XRP’s performance in the market to improve going forward even as its price keeps moving back and forth around the $0.5 mark.

Banks want privacy and speed

Schwartz further explains that even though financial institutions understand and appreciate the potential of decentralized ledger technologies, they are particularly seeking technologies that will keep transactions private while processing large volumes with accommodation for a variety of currencies and assets. As it stands, Blockchain is yet to achieve such levels of scalability and efficiency.

With so much attention being drawn to Ripple and XRP by regulatory bodies, it will be interesting to see how the company maneuvers through the courts to maintain focus on achieving its agenda. Hopefully, the verdict on Ripple XRP will be out soon and if an agreement document between Ripple Labs and Financial Crimes Enforcement Network is anything to go by, Ripple’s case might be determined sooner. According to the settlement agreement document between Ripple and FinCEN, XRP is identified as a currency and not a security. This could give ripple a fighting chance and release the regulatory pressure that the company is currently facing.

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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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