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Could Ripple be dangerous to the banks with its cryptocurrency XRP?

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Ripple Labs is one of Silicon Valley's most valuable private companies. This not only makes it unique, it also polarises the crypto community.

The company itself is the majority owner of its cryptocurrency XRP. This is one of the top 3 global cryptocurrencies by market capitalization. The aim of Ripple XRP is to gain part of the market for cross-border payments. This market is estimated at $ 2 trillion annually.

However, Ripple is also facing several court actions brought by XRP buyers. The cryptocurrency XRP itself has fallen 90% since its high in January 2018.

Why is Ripple polarizing the crypto community?

Ripple sells a small amount of XRP every month to fund itself. This allows Ripple to remain a private company without relying heavily on venture capital. Ripple has the opportunity to sell up to 1 billion XRP per quarter.

According to CNBC, Ripple Labs has a company valuation of approximately $ 20 billion. That's 5 billion more than Lyft. This is a private start-up that currently has a value of $ 15 billion.

Interestingly, Ripple Labs owns over 60% of all XRP coins. This is in contradiction to the principle of many cryptocurrencies. It is argued that XRP appears to be more centralized than other cryptocurrencies such as Bitcoin and Ethereum. In addition, the US SEC has already decided with these two that they are not securities. For XRP, however, this classification is still pending.

What is Ripples mission?

Despite setbacks, declining crypto courses and litigation, Brad Garlinghouse, CEO of Ripple, believes 2018 was a good year for the company.

Last Wednesday Ripple announced that it now serves over 200 clients and operates in over 40 countries. It is noteworthy that in the announcement a bank praised the advantages of Ripple. This was the Euro Exim Bank.

Ripple is targeting the global cross-border cash flows that are currently dominated by the Belgian SWIFT.

Ripple's advantage is to provide solutions that help make cross-border payments easier, faster and more cost-effective by using the blockchain.

Ripple is nowhere near the 10,000 customer network SWIFT maintains. But even a small percentage of this business would be enough to make Ripple prosper.

Global banks need the solutions that Ripple offers. But even Ripple CEO Garlinghouse says the status quo is the lucrative alternative for many banks. Big banks like Citi handle billions of dollars of international payments every day, earning millions. That's why they may not be as motivated to use Blockchain technology.

Garlinghouse said:

“I think Citi will be the last customer we'll ever have because he's most interested in not changing the status quo.”

Source: Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/koennte-ripple-with-your-kryptowaehrung-xrp-den-banken-gefaehrlich-werden/

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