As more cryptos penetrate the digital payment industry, cross border remittances are also affected. This has made more financial establishments to battle for dominance in a market that could boom in a couple of years. Since there are more interested parties, the competition is stiffer and there is a great need to create the best operating technology for the purpose. Many institutions are using their status as giants to achieve this aim. They are also collaborating with as many brands as possible to make it happen.
XRP (XRP) Price Today – XRP / USD
All These Institutions Target the Unbanked and Underbanked
These companies target areas that are largely unbanked and underbanked. While they jostle for a place at the top, people in such areas can enter the world of global transactional independence which has been unattainable for a while now.
Despite the seeming advantages of this idea, it doesn’t sit well with regulators and governments. It is seen as an assault on the powers of the state when it comes to monetary control.
XRP, Libra and Visa – Which Cryptocurrency Can Take the Crown?
Many people believe that cryptos can not take the place of banks. One of such people is Jamie Dimon, CEO of JPMorgan Chase. In an interview with Yahoo Finance, Dimon said payment systems are already well catered. However, he also mentioned that some top contenders for the place of the banks include Ripple and the recently introduced Libra.
Libra whitepaper was released on 18 June and has been criticized by several regulatory and financial institutions. Dovey Wan of Primitive Ventures tweeted about the issues with Libra. He said it carried a risk of becoming a financial monopoly when it comes to payment. It also carries regulatory risks. The cryptocurrency could leverage its large user base to achieve economies of scale. This could infringe on the dominance of sovereign fiats and dilute the monetary control powers in less developed nations.
Ripple and Libra are currently going head to head. Ripple, the mother company of XRP has entered strategic partnerships recently to achieve this plan. The company now collaborates with MoneyGram. In recent times, Ripple has inked a deal with Coinfirm as well. This company focuses on regulation and aims at improving the compliance status of the XRP coin. The Financial Action Task Force has advised countries to adopt a strict anti-money laundering law governance when it comes to crypto. So this move could be beneficial for XRP price in the long run.
SWIFT has also begun to show interest in blockchain adoption and cryptocurrency. Cointelegraph reported that the company has plans to let DLT based firms use its global system payment innovation platform.
XRP Could Become Liquidity Vehicle for Global Payments
So far, Ripple is using its xRapid platform as well as XRP cryptocurrency to create different iterations of money transfer services. However, it would require more incentives to appeal to a larger customer base.
Libra also has a chance to become the payment monster if it scales the regulatory hurdles. It can become a de facto money transfer system while Facebook would be a private central bank.
On the other hand, SWIFT could adopt XRP and rather than using stablecoins, XRP would be used. This could make the coin the liquidity vehicle for global payments.