Ripple and XRP received special recognition in cross-border payments


Jul 2, 2019
Ripple is a blockchain technology, that distributes and hosts the digital asset XRP. Recently, Ripple and XRP have been working tirelessly to meet the needs of the people that it serves, and stay on top of the global payment industry. As a result, Ripple and XRP received special recognition in cross-border payments, from the United States official Bill proposal under the Bureau of Consumer Financial Protection. The Bill proposal specifically acknowledged the impact that Ripple and it’s native token, XRP, had on the digital payment industry.

What is Ripple?

According to eToro, Ripple is the ecosystem behind XRP, “RippleNet and the XRP Ledger were created by RippleLabs, which uses open-source technology to beat Bitcoin in speed, and banks and other financial institutions in fees.” Ripple has its own cryptocurrency, XRP, but the XRP Ledger allows users to create their own tokens on the blockchain.

There are a definitive number of XRP in existence - 100 billion to be exact. 1 billion XRP tokens are released by RippleLabs every month, who hold 60 billion XRP in escrow. All the coins are premined, so they can be traded with the lowest transaction fees possible. Ripple is less decentralized than other coins, so it’s primary target market are banks and financial institutions, who can use the technology to accelerate transactions. At the moment, dozens of banks are adopting Ripple technology.

The Bill proposal

Ripple and XRP have been acknowledged in a Bill proposal from the Bureau of Consumer Financial Protection in the US. This was hinted at by XRP enthusiast, Yasuka, on Twitter on 12 December and has since been confirmed.

Major partnerships between Ripple in the past, and more recently, are part of the efforts that the agency looked at when determining Ripple’s worth in the cross-border payment industry. The agency sees those partnerships as a way of fostering better access to cross-border transactions.

Read the statement below:

“… the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payments messaging platform to support cross-border money transfers as well as a proprietary virtual currency, XRP, which can be used to effect settlement of those transfers.”

The agency went on to imagine the future of payment systems, should these developments persist. It highlighted that banks and credit unions could find a way to reduce their current reliance on estimates.

They went on to compare similarities between Ripple, XRP, and SWIFT, and what they could do for future developments in the cross-border payment industry.

“…they all apply elements of a closed network payment system to cross-border money transfers sent by banks and credit unions…” the Bill stated.

The Ripple Effect

Ripple and XRP received special recognition in cross-border payments, so now what?

According to the Bill, the Bureau believes that continuing to expand adoption of all of Ripple’s products, would allow banks and credit unions to know the specific amount that recipients of transfers will receive, prior to the transfer actually being made.

Ripple enthusiasts have long suspected that the banks and government entities would have a role to play in Ripple’s success. This recent document only cements that further. More recognition of this kind will foster mainstream adoption of XRP, and of Ripple’s blockchain. As far as cross-border transactions go, Ripple does seem to be the number one choice for banks and financial institutions at this point in time.

This development could lead to a major boost for Ripple and XRP. Get in while you still have a chance and trade XRP on eToro, the world’s leading social trading platform.

The future of Ripple

Ripple and XRP received special recognition in cross-border payments. This might not seem like a big deal, but a government entity has specifically highlighted Ripple as the ideal technology for banks and the payment industry to use to achieve faster cross-border transaction speeds and smoother transactions. This Bill proposal could spell very big news for Ripple supporters all over the world. If you hold XRP, now would probably be the time to start cheering.