Bitcoin and other top altcoins crashed in the past week after the Bitcoin Cash hard fork. Because of this, Bitcoin hit its newest low for the year at below $4,500. It is Bitcoin’s lowest since October 2017. But what makes Ripple different is the fact that it was able to minimize the loses that it took in the past week. Ripple even became the second largest cryptocurrency based on market capitalization.
The reason why Ripple was able to minimize losses is due to its partnerships with different institutions. There are even rumors that Ripple is partnering with Bank of America. Since the announcement of xRapid, Ripple was able to gain momentum. Its xRapid is believed to have the capacity to bridge cryptocurrency and fiat. Its goal is to lessen the cost of cross-border transactions.
xRapid Bringing Financial Institutions to 21st Century?
Ripple’s chief market strategist Cory Johnson has outlined the plans of the company to speed up transactions, specifically cross-border payments. He made use of Thailand and US as his example saying that xRapid can easily convert Thai baht to XRP which can be sent digitally to the US. It can then be converted to US dollar in just a matter of minutes.
He said that “So the state of the art is one financial institution tells the other financial institution, ‘We want to move $1,000 in Thai baht to the US right now. It’s going to result in ‘X’ number of dollars. Are you cool with that? Click Yes.’ Boom. Within a minute or two it’s done”. He also mentioned that “Our notion is that there is no payment layer for the internet. We’re creating a separate internet. Ripplenet is the phrase we use”.
Adoption Coming Soon?
Adoption is something that can dictate the future of a particular cryptocurrency. Johnson believes that companies are going to adopt the technology soon. He mentioned that “It is early, but I think we’re probably the most advanced company in all of blockchain. We’ve got over 100 paying customers. We’ve moved over a billion dollars across our network. We’re opening new corridors. I joined the company nine months ago—the company was doing about a deal every six weeks. Now it’s about every six days”.
He also added that “I do believe that there will be many businesses that use blockchain and even use digital assets, cryptocurrency, whatever you want to call it, for technological solutions. It’s just very early days”.
But despite the partnerships that Ripple established with the likes of Santander and Western Union, it is also dealing with problems. For instance, there were lawsuits that claim XRP as a security.
And recently, Ripple’s legal team was able to move the case to a federal court. There are legal experts who believe that this is a good move on the part of Ripple. It could be possible that Ripple believes that they have a stronger chance of winning the case if they get the case to federal court.
Is XRP going to have an easier time to recover considering adoption and partnerships that Ripple built? Will the court favor Ripple?