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.”
Did Satoshi Nakamoto cause the panic sell-off in Bitcoin market
Bitcoin plunged to as low as $8,750 and other digital coins recorded similar falls, with most major digital coins losing between 5% and 10%
Bitcoin plunged to as low as $8,750 on Monday morning, according to data obtained from coinmarketcap, before it rebounds to around $8,826, by 8.30am, Nigerian local time.
Bitcoin and other digital coins recorded similar falls, with most major digital coins losing between 5% and 10%, and losing more than $10 billion from the total cryptocurrencies market value.
The specific cause for this sell-off was not clear, although the cryptocurrency market appeared to be affected by old bitcoin tokens worth about $500,000 moving for the first time in years.
What you need to know about Satoshi Nakamoto: Bitcoin was created in 2008 by an unidentified individual or group using the name Satoshi Nakamoto, in 2009. The source code was released as open-source code. The coins are designed as a reward for a process known as mining.
(READ MORE: Why Nigerians’ are attracted to bitcoin)
“While it is unclear if it was [bitcoin’s mysterious creator] Satoshi Nakamoto, it is likely to be a very early-stage adopter of the crypto-asset, and the timing of the rumors themselves appear to be the source of yesterday’s flash crash,” eToro market analyst, Adam Vettese wrote in a note to investors.
Also bitcoin’s price pattern showed a mixed picture with one widely-respected cryptocurrency analyst, Quantum Economics’ founder Mati Greenspan, warning that the bitcoin price could plunge a lot further.
“We’re now sitting at the top of a long-standing wide range, the bottom of which could easily be $6,000 or even $4,000 per bitcoin,” Greenspan wrote in a note, adding that he thought there was “a fair chance” of the market turning around and “blasting through $10,000” per bitcoin.
Nigerians’ love for cryptocurrencies on the rise, as it offers cheaper ways to transfer funds
Nigerians do have a high passion for digital currencies and are among the greatest users of cryptocurrencies in the world.
In 2019 Google Trends, Lagos, Nigeria was the number one city based on online search volumes for Bitcoin worldwide. While recently, in May 2020, Arcade Research ranked Nigeria fifth globally with its 11% of connected Nigerians owning or using cryptocurrencies.
In addition, data obtained from Coinmarketcap recently revealed the largest cryptocurrency users around the world, with Nigeria surging by 46% among its youth users. As a country, it gains stood Nigeria Up 211%.
These trends have shown that Nigerians do have a high passion for digital currencies and are among the greatest users of cryptocurrencies in the world. This is based on a major fact that Nigerians are using cryptos to avoid expensive and heavily bureaucratic money transfer systems currently available. Many Nigerians rely on remittances for their daily activities and any way of making the process effective cheaper would be of great benefit to them, this is where Bitcoin comes in
What you need to know: Cryptocurrency is basically, a digital currency based on an innovative technology called the blockchain. Its users range from small businesses to process payments, financial tech-based startups, and retail consumers that use it to send money across the border and as an investment asset.
Consequently, Asia’s arguably most popular cryptocurrency exchange listed Nigeria’s Naira to be first African currency supported on its Binance P2P platform, The Binance CEO said:
“We no longer need to bank the unbanked. We can empower them with cryptocurrency financial services directly. Nigeria is a vibrant innovation hub with a great passion for cryptocurrencies. We strive to provide the easiest cryptocurrency access and best trading service for the African community, and P2P trading is a more flexible approach, giving users the freedom to choose their payment methods and counterparty in a trade.”
However Nigeria’s central bank issued a statement about three years ago banning the use of bitcoin for transaction purposes, this statement was sent to all banks in Nigeria warning them against facilitating the trading of cryptocurrencies but that seems not to pause Nigerians growing love for cryptocurrencies.
OmiseGO, a small digital coin up, 150% in less than 30 days, as Bitcoin fails to break $10,000
OmiseGO traded at $0.5 on April 1st and is presently trading at %1.26, with a market capitalization of about $276 million.
OmiseGO, an ethereum token that energizes smart contract platforms and trades under a sticker known as OMG, surged after popular American based cryptocurrency exchange, Coinbase, revealed that it would list the token on its exchange.
OmiseGO, which is not even in the top 30 most valuable cryptos in the world, has gained over 150% since April 1, according to data obtained from Coinmarketcap.
It was trading at $0.5 on April 1st and is presently trading at %1.26, with a market capitalization of about $276 million.
What you need to know: OMG coin was designed as a white-label eWallet. It was designed on the Ethereum blockchain by a Thailand based financial services company called Omise. Its full name is OmiseGo.
OmiseGo helps in easing the transfer of coins from one blockchain to another without using a crypto exchange.
Meanwhile, the broader bitcoin market is closely watching for Bitcoin to break the $10,000 price level, after Bitcoin went through a supply squeeze a few weeks ago. Yet, Bitcoin’s price has remained around the $9200+ mark in recent days.
However, Teju Adeyinka a product manager at Nigeria’s fast-growing crypto exchange, Buycoins, explained to Nairametrics why cryptos such as Bitcoin would continue to be a leading force in future. She said:
“Bitcoin is the next important thing because it ushers in a new level of financial inclusion for everyone. It is a financial system that is truly democratized and in the interest of the people. It enables people to have total control over their money and decide what it does or where it goes.
“It also opens up borderless trading and enables people who have been previously shut out economically to partake in financial opportunities beyond their geographical boundaries.
“For instance, with our new product, Sendcash, people are able to easily receive payments to Nigeria from anywhere in the world.”