Ripple News Today – XRP is referred to as the banker’s cryptocurrency because it was specifically created to power payment settlement from one point to another and to be used by banks as an internal settlement cryptocurrency. The goal that Ripple has is to reach global adoption by providing these services to banks and other financial institutions that are interested. Ripple’s technology is unique and efficient and it is the first blockchain-based protocol that was created specifically for the remittance sector. Per our last Ripple news, the challenge XRP has been facing is that Ripple has only been able to convince a handful of banks to join RippleNet and use its xCurrent and xRapid protocols. Now, instead of buying Ripple’s technology, some of these financial institutions have decided to build their own internal settlement layer and cryptocurrency. How will this affect the XRP prediction 2019 and the XRP price prediction 2019?
XRP News Today – XRP Price Prediction 2019 – XRP Prediction 2019 – More Financial Institutions Build Internal Settlement Layers
Yesterday, Nikkei Asian Review reported that mega banking corporations in Japan like Sumitomo and MUFG have decided to build a blockchain based payment settlement layer called Fnality International. This settlement layer is going to allow participating banks to use a fiat-pegged token just like XRP. So far, they have already generated $63 million from the participant banking giants. Accounts will be created in each bank before the utility settlement coin (USCs) will be issued. USCs is what the token is being tagged and it one be pegged with fiat on a ratio of one-to-one. So, if a payment is being initiated in the Japan and settled in the United States, the Yen equivalent of the cryptocurrency will be deposited by the Japanese central bank. The USCs equivalent of the money will first be converted to USD before it gets to the recipient.
XRP (XRP) Price Today – XRP / USD
Wall Street Journal posted that this system reduces the cost for international transfer dramatically because it eliminates the intermediaries. A representative of one of the participant firms, Hyder Jaffrey, said the new system eliminates settlement risk and market risk. In his words;
“You remove settlement risk, the counterparty risk, the market risk. All of those risks add up to costs and inefficiencies in the marketplace.”
Ripple News Today – XRP News Today: XRP Price Prediction – How Will This Settlement Layer Affect Ripple And XRP?
Earlier in the year, we talked about how the JPMorgan Coin poses a threat to Ripple and XRP. In fact, the uncertainty that followed after the announcement by JPMorgan possibly contributed to the downtrend XRP suffered for months. Ripple’s entire plan to dominate the $600 billion remittance sector depends on financial institutions buying and using its protocol. If all these banks decided to develop and use their own protocol, they can potentially kick Ripple out of business and make the XRP token useless. Banks will be more inclined to use a blockchain-based payment protocol that was developed by banks rather than a new company. The only edge XRP has over these other tokens is that it is tradable publicly. So, it will always have some value. However, its value may reduce dramatically.
What do you think about the XRP prediction in our XRP news today? Will the emergence of bank-owned blockchain-based payment settlement layers eventually make XRP and Ripple useless? Share your thoughts in the comment section.
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.