Ripple News Today – Ripple, the company behind the XRP token, and Facebook, the company behind the upcoming Libra token, are both in a race to dominate the cross-border payment sector. While both companies struggle to dominate this sector, it is important to note that they have to wipe out the existing providers of cross-border services, one of which is Visa. Visa has a clean track record in the cross-border remittance sector. It is one of the most popular platforms for sending money from one place to another and it offers a range of financial services beyond remittances. How will XRP and Libra compete with Visa?
Ripple News Today – XRP News Today – Cryptocurrency News Today – Ripple, Libra, XRP, And Visa
While blockchain technology has numerous use cases, one of the most common use cases of blockchain technology is in the financial sector. Cryptocurrencies are becoming popular options for digital payments with special focus on international remittance. When it comes to sending money across borders, cryptocurrencies are faster, cheaper and more efficient than traditional methods. While there are many cryptocurrencies that can be used for this purpose, XRP was specifically created for it as one of the key tools in the Ripple network.
According to the World Bank, more than $529 billion was sent to low and middle income nations in 2018. This is about 10% more than what was sent in 2017 and the number is going to keep growing as time passes. Most of the cash is being sent to Sub-Saharan Africa and SouthEast Asia. Cryptocurrencies can play a key role in remittance because they aren’t just faster but cheaper. According to the World Bank, the traditional cross-border remittance service providers charge an average of $14 to send $200. Using a cryptocurrency like XRP, you may not need to spend up to $1 for such a transaction.
XRP (XRP) Price Today – XRP / USD
Ripple was ready to take over the international payment sector. With XRP as the third largest cryptocurrency per market capitalization and with other blockchain based tech like xRapid, xCurrent and xVia, many believed that it was only a matter of time until Ripple dominates the international payment sector. Then Facebook released the white paper for its cryptocurrency, Libra. This led to mixed reactions in the cryptocurrency space. Some people believed that Facebook would be the end of Ripple. However, neither Facebook nor Ripple have enough adoption to overtake Visa, SWIFT, PayPal and other leaders in today’s financial world.
Ripple News Today – Facebook’s Libra – Cryptocurrency News Today – What’s Next?
It’s true that blockchain based systems provide the perfect technology to speed up cross-border remittance and reduce cost. However, it’s important to note that financial institutions aren’t going to give up without a fight. The CEO of JPMorgan, Jason Demon, recently said that cryptocurrencies do not pose a threat to traditional financial institutions. In his words;
“We move $6 trillion a day around the world. It is very cheap, very secure. It works. And the banking system has already built Zelle, real-time P2P, and TCH, the clearancing house, with the banking system built real-time payment. We already have all that.”
While he did acknowledge that blockchain based startups are trying to overthrow banks, he noted that the chances of this happening are slim. So, Ripple and Facebook still have a lot of work to do if they are to take control of the traditional financial sector.
What do you think about Ripple news today? Will Ripple and Libra succeed in making SWIFT, Visa and the likes obsolete? If they succeed, who will dominate the market? XRP or Libra? Share your thoughts in the comment section below.