Ripple Is About To Get Kicked Out Of Business As Major Banks Build Blockchain-based Settlement Layers: How Will This Affect The Price Of XRP?

Ripple

If you’re a digital asset investors in the XRP rich list, you can testify that Ripple and XRP have had to endure many challenges including criticism, bearish pressure on price, XRP SEC saga among other things. Irrespective of how strong the XRP army is, it’s difficult to simply ignore bad press and competition. In our XRP news sometime in January, we talked about how the release of the JPM Coin was going to change the game for Ripple and affect the XRP price prediction 2019. Even though Brad Garlinghouse was confident that the JPM Coin isn’t a threat to Ripple, the events that have unfolded after that time should that it is. Now, the XRP news on CCN states that many big banks are building a blockchain-based financial settlement layer. How will this affect the XRP price prediction 2019 and the XRP news in the future? Is Ripple coming to its premature end?

XRP Prediction 2019 – Ripple News – XRP News – Major Banks Snub Ripple: Could This Be The End Of XRP?

Ripple is a blockchain based payment protocol that intends to reinvent the traditional remittance sector by changing the way money is sent from one point to another. True, the technology is faster, more secure and cheaper than the traditional tech for cross-border remittance. However, in other to achieve its goal, Ripple needs to get major banks and financial institutions to join RippleNet and use its protocols.

The current financial system is heavily centralized. Ripple presents a decentralized solution that would have these banks forfeit their control. Since there are millions to be made from retaining this control, Ripple is having difficulty convincing banks to join its course. The technology is good but the banks are not willing to give up control yet. This is why they have decided to benefit from decentralized ledger technology by building their own blockchain-based systems instead of signing up to use Ripple. Per the latest report, a group of banks including Banco Santander, UBS, and ten other banks are making plans to launch a settlement layer based on blockchain technology.

XRP (XRP) Price Today – XRP / USD

#NamePrice24H %
3
ripple
XRP(XRP)
$0.224
1.40%

Rather than signing up to use Ripple’s tech, these twelve banks are going to copy it and create their own versions which would allow them to enjoy the benefits of decentralised ledger technology while retaining their control. The project is going to cost about $50 million and it has the potential to kick Ripple out of business.

Ripple News Today – Current Price Of XRP – XRP Prediction 2019 – What The Future Holds For Ripple

By creating an internal blockchain-based settlement layer just like Ripple and developing a token just like XRP, JPMorgan gave other major financial institutions the courage to start using blockchain technology. Right now, the project that these twelve banks are working on is about 4 years away from being launched. This means that Ripple has 4 years to convince as many financial institutions as possible about why they should use its protocol. If Ripple is unable to do this, there is a high chance that the price of XRP may never hit incredible highs. This is because one of the catalysts that was meant to fuel a surge in the price of XRP was the integration of xRapid by banks. If banks no longer need xRapid because they have their own protocol, the cost may be devastating to XRP and Ripple.

The good news is that most of these tokens will not be publicly available for trading like XRP. They will only be internally available. So, this may still give XRP an edge over these utility tokens that would be created to fuel the new payment settlement layers.

What do you think about the XRP news today? Does Ripple stand a chance if these banks go ahead with their plans? Share your thoughts in the comment section below.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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