Ripple (XRP), the third most widely used crypto-asset behind bitcoin and Ethereum, has gotten the attention of the world’s biggest economy for money remittance.
Ripple (XRP) is currently trading at $0.2025 with a market capitalization of about $8.9 billion and a daily trading volume of $1.96 billion, according to data obtained from Coinmarketcap.
America’s Consumer Financial Protection Bureau has given Ripple approval for its use in cross-border money transfers.
According to a report recently published by America’s Consumer Financial, Protection Bureau has been researching new developments in the remittance market, including trends related to digital currencies.
U.S Consumer Financial Protection Bureau, which plays a major role in protecting America’s consumers in the financial sector, wrote on the “continued growth and expanding partnerships” of companies such as Ripple.
The report also noted the use of Ripple for settlement of cross-border money transfers:
“The Bureau has continued to monitor…the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payment messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect a settlement of those transfers.”
What you need to know
Ripple (XRP)plays both roles as a payment platform and a currency.
The Ripple platform is an open-source platform that is created to allow quick and cheap transactions.
Unlike its crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks, like Standard Chartered, and Barclays for international transactions worldwide.
Interestingly, the U.S Consumer Financial Protection Bureau seems to love Ripple for bringing simplicity and openness to the financial industry:
“To the degree banks and credit unions increase their reliance on closed network payment systems for sending remittance transfers and other cross-border money transfers, the Bureau notes that this could result in greater standardization and ease by which sending institutions can know exact covered third-party fees and exchange rates.
“The Bureau also believes that expanded adoption of SWIFT’s GPI product or Ripple’s suite of products could similarly allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent.”
Nigeria leads Africa in Bitcoin P2P lending
Nigeria leads Africa peer to peer lending in 2020, posting monthly P2P volumes of around $25.8 million, followed by South Africa, Kenya.
Nigeria’s increased use of Bitcoin has become the norm in the crypto-verse, taking into account that in the past 8 months, it leads the whole of Africa combined, in the transactional value of P2P payments.
Still, what seems astonishing to many crypto experts is the amount Nigerians transact with Bitcoins P2P monthly, amid the prevailing recession biting hard on Africa’s biggest economy when compared to other African countries.
Data retrieved from Usefultulips, a BTC analytic data provider, reveals a significant amount of Nigerians use Bitcoin for peer to peer lending for their payments.
Recent statistics show Nigeria leads Africa peer to peer lending in 2020, posting monthly P2P volumes of between $25.8 million, followed by South Africa and Kenya respectively posting about $8.2 million and $7.7 million monthly.
What you must know: Bitcoin, peer to peer is the exchange of Bitcoin between parties (such as individuals) without the involvement of a central authority. This means that peer to peer use of Bitcoin takes a decentralized approach in the exchange of Bitcoins between individuals and groups.
A spokesperson for Binance in Africa, Damilola Odufuwa in an exclusive interview with Nairametrics gave key insights on the role the world’s biggest crypto exchange, Binance is having on Africa, particularly, the Nigerian economy;
“Over the past year, over 40,000 Africans have received free crypto education via Binance education programs/events. Our last virtual masterclass had over 5000 attendees and thousands more watching on YouTube. A huge population of the attendees is definitely Nigerians who are looking to acquire skills they can use to make some extra money while underemployed at their “9-5” and also for the many who didn’t receive a salary from their employers or lost jobs over the year,” Odufuwa said.
Odufuwa also spoke on the need for more Nigerians to acquire skills around the crypto value chain, taking into consideration that it is now the modern lifeline of finance and business operations globally.
“The crypto industry is still a growing industry, so educating oneself about crypto and applying the skills you already have to jobs in the crypto industry could help some of the unemployed,” she added.
Bottom line: A significant amount of young Nigerians are acquiring skills on Crypto to sustain and drive their income and livelihood, as it offers the safest, cheapest processes of moving capital in relation to other traditional means of payments.
Japanese investment company test Ripple’s use in FX market
SBI Holdings and FXcoin Ltd. have begun testing the use of Ripple’s crypto XRP in settling credits and corporate debts.
A leading Japanese investment giant, SBI Holdings, and Crypto startup, FXcoin Ltd, have begun testing the use of Ripple’s crypto XRP in settling credits and corporate debts.
The crypto start-up is leading the experiment, which involves Japanese investment and trading giant, Sumitomo Corporation, in settling credits and debts to other Sumitomo Group companies with XRP.
Sumitomo Corporation will also “make a future transaction with [FXcoin] to hedge the price movement of XRP and sell XRP to [FXcoin] on a specific date,” according to the press release from the crypto start-up, FXcoin.
“This is expected to lead to the expansion of XRP-denominated transactions in the future, in the activities of globally expanding operating companies.”
The press release also gave more details into operational structure and strategy.
- We are confident that the demonstration experiment conducted this time will not only show the usefulness and potential of future transactions using cryptocurrency assets for the first time in Japan, but will also lead to the establishment of the Swap market for cryptocurrency assets listed by the Company.
- By expanding this Swap market, we will contribute to the expansion of transactions with crypto assets as quoted prices.
- In addition to Sumitomo Corporation, Sumitomo Corporation Global Metals Co. Ltd. and the SBI Group also participated in this demonstration experiment.
- XRP is a native crypto asset of the international payment ecosystem.
What you should know
- RippleNet is a network of institutional payment-providers that include banks and payment providers that use solutions developed by Ripple to provide a seamless experience in sending money worldwide.
- RippleNet uses a leverage of cutting-edge blockchain technology in streamlining payments services that help in reducing costs.
- It should also be added that On-Demand Liquidity (ODL), Ripple’s XRP-powered cross-border payments product, is available in the US, Mexico, Europe, the Philippines, and Australia.
- RippleNet service offerings are available in 95 currency pairs, according to the fintech’s redesigned website.
Ripple tumbles amid high selling
Such a plunge dropped XRP’s market capitalization to $27.8 billion, or 4.96% of the total crypto market capitalization.
The law of gravity seems to have taken its toll on Ripple, the third most valuable crypto by market value.
At the time of writing this report, Ripple traded at $0.60289 as seen by Nairametrics on Wednesday, down 10.11% on the day. This is the largest one-day percentage loss since Nov 26.
Such a plunge dropped XRP’s market capitalization to $27.8 billion, or 4.96% of the total crypto market capitalization. At its highest, Ripple’s market capitalization stood at $31.6 billion
Ripple has been trading around $0.60289 to $0.61137 in the past 24 hours.
Over the past week, crypto sellers have pushed XRP prices lower by 11.54%. The volume of Ripple traded in the 24 hours to time of writing was about $17 billion or 7.27% of the total volume of the entire crypto market.
What you should know: XRP was designed by Ripple mainly to perform speedy, less costly, and more scalable alternative transactions for both crypto assets and existing monetary payment platforms like SWIFT.
- Ripple owns more than half of the total supply of XRP. In late 2017, the company vowed not to sell all of its tokens (XRP) at once, keeping up to 55 billion XRP in protected escrow accounts.
- Ripple (XRP) plays a dual role as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.