Is XRP Dead? Cryptocurrencies Can Never Replace Fiat Or Banks According To An Official From European National Bank, Will Ripple Survive?

Cryptocurrencies were created to free the world from the shackles of centralized institutions. Unlike fiat money that is regulated by banks and governments, cryptocurrencies are based in decentralized ledger technology. No government can print cryptocurrencies or control its circulation. While Bitcoin has been unable to take over physical cash because it is too slow and hasn’t reached mass adoption, Ripple and its XRP token may have what it takes to achieve this goal. Ripple was created to reinvent the traditional financial system. The XRP token, which is based on Ripple’s protocol, is meant to take over fiat as the most important and globally accepted medium of exchange. Well, that’s what every digital asset investor on the XRP rich list is hoping will happen. Unfortunately, a prominent member of the traditional financial space from southern-central European Bank, Daniel Daianu doesn’t feel the same way.

XRP News Today – Ripple News Today – XRP Price Prediction 2019 – Cryptocurrencies Will Can Never Take Over

Recently, Daniel Daianu said that it is impossible for cryptocurrencies to ever take over fiat currency in the nation. In fact, he said that cryptocurrencies don’t qualify as currencies at all. In his words;

“In my opinion, these are financial assets, not cryptocurrencies, and they won’t be able to fulfill the basic roles of currency. Cryptocurrencies will never be able to substitute the currency issued by a central bank. The only way digital currencies would be acceptable was for central banks to have a digital currency but that will also be issued by the bank, and commercial banks will receive digital currency that can multiply.”

XRP (XRP) Price Today – XRP / USD

Name Price24H (%)
XRP (XRP)
$0.323075
1.01%

Daianu made a good point and this is something that Ripple may already know. You see Ripple doesn’t want to overtake banks. It wants to overtake SWIFT. SWIFT works hand in hand with banks to enable cross-border payment. However, swift is more expensive that Ripple and it is slower. The challenge for Ripple now is that instead of using the xRapid protocol, banks are starting to create their own blockchain-based settlement systems that will function just like XRP and xRapid like Daianu said. A typical example of a bank that is doing this is JPMorgan.

XRP Price Prediction 2019 – XRP News Today – Ripple News Today How Will This Affect The XRP Price Prediction

If more banks continue to create their blockchains rather than use Ripple, there is a strong chance that Ripple’s xRapid will become useless to banks. Since XRP is the fuel that powers xRapid and Ripple controls 60% of the total XRP in circulation, the effect on the price of XRP will be catastrophic. However, there is no need to focus only on the negative side as it’s going to take at least one decade or more for banks to fully embrace blockchain technology and create their blockchains. This is based on the assumption that they will.

On the upside, if Ripple is able to convince more financial institutions to join RippleNet and use its xRapid protocol, the effect on the XRP price will be incredible. The XRP token will eventually become the most important token in the world. For now, we can only wait and see.

What do you think about the XRP news today? Will XRP be made by banks and financial institutions or will these institutions be the death of Ripple? 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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.