Adoption is something that a lot of cryptocurrencies are working on. In fact, Vitalik Buterin thinks that adoption is far more important than having a Bitcoin ETF.
Ripple has been looking to get adopted by banks. With its new product, xRapid, Ripple hopes to lower the cost of cross-border transactions. According to them, xRapid is the “bridge” between cryptocurrencies and fiat. And not only that, there are already three companies willing to try and utilize xRapid in their transactions.
Because of this, XRP was even able to outperform Ethereum and get the spot as second best cryptocurrency in two occasions.
Ripple’s Working Towards Adoption
Adoption is something that Ripple has been working on for quite some time now. And with Tokyo Olympics 2020 in the horizon, there is now a call to make XRP the official digital currency of the said event. Ken Takahashi created the petition to make XRP as the official cryptocurrency for the next Summer Olympics. So far, it has gathered 7,500 signature votes.
One of the things that it hopes to solve is the logistic problem that many foreign exchanges are going to face once tourists flock towards Tokyo in 2020 for the Olympics. The motivation for the petition came from the struggles of the last few Summer Olympics. The petition reads that “As tourists stream into the country, demand for the local currency skyrockets, causing long lines at currency exchanges, as seen at past events like Beijing 2008 and Rio de Janeiro 2016. Confusing exchange rates and language barriers further complicate the problem”.
The petition was created ten months ago. However, it has been getting some traction already. And considering the announcement of xRapid not to mention the fact that the next Summer Olympics is going to happen in Japan which is known for its crypto adoption, it is possible that this could actually happen. Ripple also recently launched MoneyTap which is a blockchain remittance platform that was built by Ripple and SBI Holdings.
MoneyTap can play a huge role in XRP’s adoption. Takahashi’s plan is to replace yen as the currency that is going to be used during the Summer Olympics. By having MoneyTap, this could potentially allow people from different parts of the globe make use of cryptos as their mode of payment.
If it is going to be approved, this can be a boost for XRP that is currently the third largest cryptocurrency based on market capitalization. If XRP is going to be used for microtransactions, this could mean a lot for XRP. This could even solidify what it can do for everyday purchases.
Challenges for XRP
There were challenges for XRP in recent months especially after a number of lawsuits came forward with claims that XRP is actually a security. Though both Bitcoin and Ethereum were considered by the US Securities and Exchange Commission as commodities, this wasn’t the case with XRP.
With recent developments made by Ripple, it is possible that XRP could become bigger. Will Ripple be able to become the official cryptocurrency for the 2020 Olympics? Will businesses adopt XRP considering cryptocurrencies are dealing with volatility issues?