Ripple And XRP Are Great For The Banks And Intermediaries But It’s Not Ideal For The People

Ripple intends to make cross-border payment frictionless on a global scale. Over time, the company has sealed many partnerships that are aimed at bringing it closer to this goal. The road to achieving this hasn’t been entirely smooth. There are some experts who do not believe that the Ripple technology is beneficial to the people. Recently, the executive chairperson of Banco Santander, a Spanish multinational Bank, Ana Botín, delivered a speech about Ripple’s technology.

Ana Botín Talks About Ripple’s Technology

During the Santander International Banking Conference in Madrid, Botín talked about Ripple’s payment platform, One Pay FX. She said that the OnePayFX app has done well since it was launched in April 2018. In her words:

“With One Pay FX, you can perform real-time transfers between continental Europe and UK for the same price as Transferwise. This is why we need to think about the real reciprocity. The devil is in the timings and details.”

XRP (XRP) Price Today – XRP / USD
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Transferwise is a payment platform that offers financial services traditionally without blockchain or cryptocurrency. This platform can be used to make instant payments within countries. However, when used for cross-border payments, some delays occur. Sometimes, it takes up to three days for traditional payment providers like Transferwise to process payments from one country to another. These cross-border payments also cost more than national payments. One Pay FX, on the other hand, provides blockchain based solutions faster and a lower rate irrespective of the destination.

Ripple Benefits The Banks And Not The People

After commending Ripple’s technology, Botín talked about a clause. According to her, Ripple isn’t building technology for traders. Rather, the company is building technologies for banks and other financial institutions. This puts Ripple is a different category than Bitcoin and other forms of decentralized ledgers that aim at eliminating intermediaries, empowering the people and providing decentralised money.

According to the banking employee many banks are adopting the Ripple communication protocol. They use this technology to send payments from one bank to another. The XRP token plays a minor role in the transfer process. It is XRP that is collected as fees when the RCP technology is used. This isn’t enough to cause a significant boost in the price of XRP.

The average trader has no real use for Ripple’s technology. Only banks have a use for it. If it becomes too expensive for them to use, they will revert to their former protocol. So, the chances of the price of XRP rising as high of $10 is relatively low. This doesn’t mean it is impossible for the price of XRP to rise significantly. In an unpredictable market, there is no saying what the next few days will bring.

XRP (XRP) Price Analysis

At the time of writing, XRP was trading at $0.331422. This means that it is down by 0.35% against the USD but up by 0.36% against BTC. The trading volume over a 24 hour period is $424,338,145 and the market capitalization is $13,601,707,729. The next few days of trading will determine if the price action will change or not.

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.


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