- XRP is getting more attention from banks and other financial institutions
- Weiss Ratings says that the cryptocurrency has a competitive advantage over other cryptocurrencies used for money transfer
Ripple Labs’ XRP has a competitive advantage over other digital tokens used in crypto-based payments services, according to Weiss Ratings.
In a tweet, Weiss Ratings acknowledged Ripple’s expertise in facilitating cross-border payments as well as high praise for its cryptocurrency XRP. The company wrote “#XRP strives to change the way we make cross border payments – using XRP, transactions can settle within seconds, and this is huge for private investors and institutions alike. We think the way XRP’s consensus works gives it competitive advantage over others in this area. #crypto.”
While Ripple Labs did not get giants the likes of Western Union on board, its cryptocurrency-based network is still one of the best ways to transfer money internationally, according to reports. The tweet from Weiss Ratings redeems Ripple’s name, observers note. XRP, however, is independent from the Ripple network. Observers say that it was introduced as an alternative.
Ripple says that XRP’s main aim is to make overseas transfer rates more affordable while ensuring that payments reach recipients within seconds. Money transferred through XRP only takes 3.5 seconds to deliver and is immediately spendable. The altcoin has attracted a number of clients in the past year, including banks and other brick and mortar financial institutions around the globe. The product is slowly gaining ground and much like xRapid, experts note that XRP will also be adopted massively. XRP is currently making headlines because it is now as well-known as Ethereum. Reports say that it also commands a good price.
XRP is set to become one of the world’s leaders in cryptocurrency payments by 2019. One of the reasons, experts note, is its partnership with JP Morgan. Other major banks in the United States are reportedly going to follow suit.
The only problem for XRP, experts add, is the blockage against cryptocurrencies in general. While digital tokens are important for many fintechs, the cryptocurrency market itself is deemed unstable. The Securities and Exchange Commission (SEC) in the United States has not yet approved cryptocurrency ETFs because of the market's volatility. The world’s largest recipient of remittances India is fighting crypto as well, based on recent reports. With a remittance market worth a whopping $69 billion, India would be a great loss for XRP and others like it, according to observers.
XRP is not mined like other tokens though, as the number of XRP in the world was issued during its inception. XRP behaves like shares or stocks. Ripple just picked a number and issued the XRP coins that are now available. What worries many is the possibility of Ripple issuing more of the tokens. There are currently 100 billion XRP coins today.
Ripple has a positive outlook for 2019 though, because the popularity of XRP will encourage adoption among banks and institutional investors at home. Crypto-based payments are likely going to get more attention this year, according to analysts, as they are expected to bring better payment services and rates.
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