Popular payment based crypto company, Ripple, which controls the fourth most valuable cryptocurrency by market capitalization, recently unlocked 1 billion XRP, worth about $177.6 million, from an escrow account.
Whale Alert monitored this movement, which occurred in two different 500 million XRP transactions, in real-time.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (88,240,341 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) July 1, 2020
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.
It then set up a plan to release about 1,000,000,000 XRP monthly for sale to be used as funding for its operations, and to invest in startups of interest, with the rest kept back in the escrow accounts.
Quick fact: Ripple (XRP) plays dual roles as a payment platform and a currency. The 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.
Recall that a few months ago, the U.S Consumer Financial Protection Bureau looked excited about Ripple as a tool for bringing simplicity and openness to the financial industry. It said:
“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.
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“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.”
Cryptocurrency: Experts task SEC to issue guidelines for trading
Regulators should emulate their foreign counterparts and come up with proper regulatory framework.
The Securities and Exchange Commission (SEC) has been tasked to introduce guideline framework for the trading operations of Cryptocurrency in Nigeria.
According to them, the responsibility for creating a framework for Cryptocurrency trading in Nigeria lies with SEC and not the Central Bank of Nigeria (CBN), as it is done in the United States of America and other developed nations.
These were the words of experts at the On The Money show on Twitter (Ugodre’s space), put together by Ugochukwu Obi-Chukwu, Founder of Nairametrics, on Saturday.
One of the speakers and an investment analyst, Wale Okunrinboye explained that CBN has done what is within its power and the buck lies with the SEC, whose responsibility is to create the required framework.
He said, “CBN has done its bit, SEC has more to do but both of them seems to be pointing fingers. CBN is saying it can’t go ahead without SEC and vice versa. I urge them to emulate their foreign counterparts and come up with a proper regulatory framework.
SEC should come up with an exchange on crypto like Coinbase. If you have an exchange to regulate it is easier to monitor crypto. SEC should lead and issue the guidelines for the crypto market.”
A financial market analyst, Olumide Adesina, explained that crypto players need to engage the regulators more, instead of launching offensives from the sidelines. He said, “Nigerians need to be aware of the growing risks of crypto scams which cannot be eradicated without a strong input from SEC.
Crypto players need to lobby the regulators rather than going offensive, knowing fully well the clear mandate of SEC is protecting the Nigerian capital market.”
About Nairametrics: Nairametrics is a leading Nigerian financial resource company that offers services ranging from business news coverage, corporate analysis, macroeconomics data sourcing /analysis, and more.
Cryptocurrency: FG should set up presidential commission on cryptocurrency – ACCI
The Federal Government has been urged to set up a presidential task force on cryptocurrency adoption.
The Abuja Chamber of Commerce and Industry (ACCI) has urged the Federal Government to set up a presidential task force on cryptocurrency adoption, citing increased adoption of cryptos in the global markets.
This was disclosed by Dr Almujtaba Abubakar, ACCI President, in a statement on Friday in Abuja. He suggested that the FG should propose a plan which would enable cryptocurrency to be used in Nigeria’s financial markets.
“The commission should propose a plan of action for phased usage of the technological currency within the Nigerian financial system,” he said.
“We suggest that members of the commission should be drawn from the Central Bank of Nigeria (CBN), Nigerian Stock Exchange, banking /financial Institutions, bitcoin community, digital currency experts and relevant MDAs and organised private sector.
It is our considered view that such a commission will have all facts on the table and will be able to chart a sustainable path forward for Nigeria,” he added.
The ACCI cited Vice President, Osinbajo’s views on cryptocurrency being a global phenomenon that nations must address rather than run away from.
“The policy lacuna impresses on the administration to consider possible options to prepare the nation to cope with the positive and negative fallouts of this new financial technology,” the ACCI boss added.
In case you missed it
Nairametrics reported that the Securities and Exchange Commission (SEC) had revealed that it was working with the Central Bank of Nigeria for a better understanding and regulation of cryptocurrencies in the country.
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