Bitcoin’s domination over other tokens may soon come to an end
Investors that trade cryptocurrencies know this fact. When Bitcoin depreciates, it often causes a lot of other digital assets to its fall. For Brad Garlinghouse, the CEO of Ripple, this “BTC addiction” is expected to end soon. XRapid project and other good ripple news!
BTC and cryptocurrencies: “fundamentally independent” technologies
Up to now, price movements in the majority of digital currencies have been closely related to those of the primary cryptocurrency, Bitcoin, which was launched in 2009.
The CEO of Ripple, Brad Garlinghouse explained it clearly. Global markets will incorporate fundamental differences that exist between the different digital currencies. Hence, the Bitcoin influence on the global cryptocurrencies trends should gradually decrease.
Previously for Ripple news, there was a strong correlation between the price of XRP and the one of Bitcoin. Nowadays these are fundamentally independent open-source technologies. It will be showed up and you will be able to see the emergence of a more rational market over time, with behaviors that reflect this independence.
As a reminder Ripple is the name of the company based in San Francisco. They developed a network to facilitate international financial payments. For its part, the XRP is the token that can be used on the same network by financial institutions that want to conduct cross-border transactions, almost free and almost instantaneous.
According to Garlinghouse, Ripple news, it would have had a record first quarter, signing agreements with 20 new companies. The company announced recently the establishment of a partnership with the largest bank in Kuwait. It comes above the list of financial institutions (including MoneyGram) that are already testing the XRP to achieve cross-border payments.
Yet, at the same time, the course of the XRP collapsed.
Ripple news, the asset – which has lost nearly 84% of its value since a historical record of more than $ 3.80 crossed on January 4th – currently represents the worst performer of the main cryptocurrencies in the year 2018.
The evolution of the Ripple price (XRP) in 2017-2018
But the entire ecosystem has suffered over the same period, while valuations of Bitcoin and all other cryptocurrencies both fell by around 46% in 2018.
Ripple news. With a market cap of nearly $ 24 billion, the XRP remains firmly anchored to its 3rd place in the cryptocurrency rankings, behind the Ether and in front of Bitcoin Cash.
For Garlinghouse, the volatility found on crypto-markets should soon decrease. This is still an emerging sector, and trading is still dominated by speculation. “I think it’s only a matter of time before people get a better understanding of their different use cases.”
If one could count, when writing this article, 1635 digital currencies trading on the markets, the leader of Ripple think that the majority of these corners will have “disappeared” in ten years:
“We are going to see a correction coming along the way. Many players in this ecosystem, who are not solving a real problem, will disappear, “he predicted.
The XRP, a real financial title?
Ripple news. Brad Garlinghouse also praised the role of the US Stock Exchange Constable – SEC (Securities and Exchange Commission): “The SEC is doing the right thing to the extent that we have seen a lot of fraud,” he said. “The government should protect investors and businesses, even though we are seeing really useful innovations.”
The regulator must also determine whether the cryptocurrencies should be equal to real financial securities. Jay Clayton, its chairman, said last March that he believed that all the tokens offered under ICOs were indeed securities, and that they should be subject to the rules that apply to securities.
But for Mr. Garlinghouse, equating the XRP with a true financial title would not make sense: “If you have XRP, you do not have rights to the profits or dividends of the company,” he said.
Ripple and xRapid solution launch
Ripple news. A commercial version of the xRapid solution should be available soon according Ripple executives. 120 banks are already using his xCurrent product for their customers.
Ripple expects to launch a commercial version of its xRapid payment platform “in the next month”. He explained that the company had already made significant progress in developing its xRapid product.
Using XRP cryptocurrency, xRapid should help banks accelerate their cross-border transactions by acting as a “bridge” between fiduciary currencies.
CNBC cites the example of a US bank that would like to send funds to India – a process that traditionally requires pre-funded accounts in local currencies. Thanks to xRapid, it will be able to convert dollars into XRP tokens, transfer them abroad, before converting them into Indian rupees.
Ripple news. If no bank has yet started testing xRapid, Sarbhai said 120 financial institutions are already using one of Ripple’s other products, xCurrent.
Ripple news: US banking giant joins RippleNet
PNC Bank is the 9th largest bank in the United States. They joined RippleNet, the Ripple’s blockchain business network. PNC financial Services has more than $ 380 billion in assets under management. It is the latest institution to join RippleNet.
This global payment network brings together more than 100 financial institutions, including banks and payment service providers. The objective: to allow them to benefit from almost instantaneous international money transfers, that can be tracked through a blockchain.
PNC Bank counts more than 8 million customers across 19 states. They count offers retail banking and investment banking services.
Ripple news. In a statement, Ripple welcomed this arrival. “The technology developed by Ripple will have an immediate impact on every division of the bank. It included allowing PNC’s commercial customers to receive payments from foreign banks in real time.”
Yesterday, one of these Ripple executives spoke about the expansion of the RippleNet network, now used in 40 countries:
The xRapid solution will soon be operational
PNC’s arrival should probably put a spotlight on RippleNet, the flagship product of Ripple – a product that does not rely on the XRP token.
Ripple news. The Californian company is also developing the xRapid solution. Which in turn uses this cryptocurrency to speed up cross-border transactions, acting as a “bridge” between fiduciary currencies.
If Western Union has started a test phase with xRapid, the arrival of an operational version of the product would be imminent. Recently, Sagar Sarbhai, Ripple’s Asia Pacific and Middle East Regulatory Affairs Director, made a statement. “I am extremely confident that we should see good news in the coming month with the live launch of our product”.
Ripple news. On his side, Brad Garlinghouse, confirmed previously that dozen of banks would use the XRP by the end of 2019.