Bloomberg Editor Says JPMorgan’s Cryptocurrency Will ‘Obliterate’ Ripple; is XRP in Trouble?

On February 14, JPMorgan, the $340 billion banking giant, launched a stablecoin called JPM Coin. Industry experts foresee the stablecoin thrashing Ripple and its cryptocurrency XRP in the long run.

Joe Weisenthal, co-host of Bloomberg’s What’d You Miss? said:

“If it turns out that the Blockchain/Coin framework turns out to be a good one for banks transferring money around, then the JPM Coin should absolutely obliterate Ripple.”

“Think about it, let’s say you were in the business of transferring money, why would you take on the exchange rate volatility risk associated with having Ripple as a bridge currency, when you could have a fiat-coin backed by JPMorgan. No brainer.”

Executives at major cryptocurrency investment firms such as Multicoin Capital raised a similar issue for XRP.

Could the Price of Ripple (XRP) Decline Due to JPMorgan’s Crypto?

The Ripple blockchain network is a payment infrastructure for cross-border transactions which banks and financial institutions can utilize to send and receive payments with low costs and faster clearing time.

RippleNet and XRP serve as the main tools on the Ripple blockchain network that enable financial institutions to clear transactions using the blockchain.

The value of any settlement network comes from its liquidity and on a banking network, the liquidity comes from the number of banks that exist on the network.

Ripple, the company, has been focused on establishing partnerships with both banks and fintech service providers throughout the past several years, primarily to improve the liquidity of the network.

The concerns of industry executives and experts on the long-term growth trend of XRP is that if JPMorgan uses JPM Coin to settle payments between its clients, as the bank said, it will put XRP in direct competition with JPM Coin.

Speaking to CNBC, Umar Farooq, JPMorgan blockchain projects head, said that JPM Coin will have three core use cases and the primary use case is international payments for corporations.

“The first is for international payments for large corporate clients, which now typically happens using wire transfers between financial institutions on decades-old networks like Swift,” CNBC reported.

The problem is, that is exactly what Ripple was built for and the company has the same vision as JPM Coin: to overtake SWIFT and establish a global blockchain network for financial institutions.

In November 2018, Ripple CEO Brad Garlinghouse said in an interview with Bloomberg:

“The technologies that banks use today that Swift developed decades ago really hasn’t evolved or kept up with the market. Swift said not that long ago they didn’t see blockchain as a solution to correspondent banking. We’ve got well over 100 of their customers saying they disagree.

Essentially, JPM Coin and Ripple have the same use case, are targeting the same market, and are both aiming to overtake the SWIFT network.

Tushar Jain, a general partner at Multicoin Capital, said JPMorgan will “wipe the floor with Ripple,” emphasizing that banks would rather use a technology developed by banks rather than a company outside of the traditional financial sector.

XRP in Trouble?

In the past three months, the price of XRP has fallen from $0.565 to $0.298, by more than 47 percent.

The decline in the XRP was accelerated by the inability of the cryptocurrency market to maintain the momentum created in the last quarter last year.

But, in comparison to other well-performing cryptocurrencies such as Binance Coin and Bitcoin, XRP has underperformed.

It remains to be seen whether the increasing competition in the blockchain sector and cross-border transactions market will directly lead toward a decline in the price of XRP.

The concerns in the long-term growth of XRP are in the challenging environment Ripple is in following the release of JPM Coin to secure banking partners.

Click here for a real-time Ripple price chart.

Featured Image from Shutterstock. Price Charts from TradingView.


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Author: Joseph Young 
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Binance Earned $446 Million In Profits In 2018, Latest Analysis Shows

Even if Binance did not disclose the details of their earnings so far, The Block was able to find out how much the company earned by factoring the burn rate of the Binance BNB token, reports CryptoGlobe.

$446 million in 2018

The Block’s analysis determined that the company made $446 million throughout 2018.

The Block’s Lary Cermak explained that “As part of maintaining its coin, Binance uses 20% of its net profits to buy back BNB and eventually destroy 100 million BNB tokens, according to the whitepaper. After every BNB burning, Binance publishes a disclosure report.”

He continued and said that “So far, Binance has had six quarterly BNB burns, in which it destroyed a little over 10.8 million BNB. Every burn is done based on BNB price on the day of the burn, which means that if the BNB totals are multiplied by the price of BNB on the day of the burn, we can get a USD equivalent of 20% of the profits.”

And he also said that Binance’s profit is “simply five times the USD equivalent of each burn, if the firm is staying true to its whitepaper commitment.”

Profits were correlated with the bulls and bears in the market

According to the same analysis, the exchange’s profits have also been correlated with the swings in the crypto market.

Binance earned more during the bullish times, less and in the bearish ones.

Back in July 2018, Binance’s CEO Changpeng Zhao was predicting that by the end of 2018 the company should see $500 million.

The reports also show that the exchange traded about $664 million worth of crypto on a daily basis.

Binance to team up with Ripple

Binance was in the spotlight recently again after CZ made the Ripple and XRP community happy with his latest announcement that he would team up with Ripple to promote XRP adoption.

Zhao said that the details for this partnership had not been established yet, because for now, Binance has other priorities.

But he made sure to highlight the fact that this is definitely in the cards.


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Author: Eduard Watson
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What does SWIFT partnering with R3 mean for Ripple and XRP?

Announced during the Paris Fintech Forum earlier today, SWIFT CEO Gottfried Liebbrandt stated his company has partnered with R3 that will see SWIFT making use of R3’s Corda platform, but what does all this mean for Ripple and XRP.

Starting at the top, global payment network SWIFT revealed its plans of launching a proof-of-concept of a gateway called GPI Link that will enable blockchain technology firm R3 to link to GPI payments from their own platform. This essentially means that obligations that exist for a Corda user can now be settled using XRP.


CEO of R3, David Rutter commented on their trial with Ripple several months ago:

“The tradition of holding numerous currencies across multiple accounts in different countries is costly and inefficient. This is a legacy issue from a time when the technology did not exist to offer a viable alternative; however, digital assets and distributed ledgers can now enable real-time exchange of currencies between parties anywhere in the world without the need for a third-party intermediary. This prototype paves the way for a major overhaul of how banks process and settle cross border payments.”

David Schwartz, Chief Technology Officer at Ripple explained on Reddit several months ago what something like this would mean for the future of the company. He stated that the primary reason Ripple is working in the payments space is that the current payment technology isn’t good enough to fully realize the benefits of XRP. Now, instead of fighting SWIFT for the development of a more sophisticated network, Ripple will instead be able to dedicate more reources to the execution of their XRP strategy.


Senior Vice President of Global Transaction Banking at CIBC summed up the benefits in a statement, saying, “A more efficient global payment system is all about making payments faster, easier and more transparent for businesses and consumers. Using innovative technology to rethink traditional processes is exactly what’s needed to give businesses everywhere an easier way to send and receive payments, and we are very active in making that a reality for our clients.”

But this news doesn’t only mean good things are coming to Ripple. For SWIFT, with 10,000 banks in its network, to use XRP may be just be what the market needs to get out of the current bear market, and may even pave the way for regulatory clarity that the industry so desperately needs. Additionally, mainstream media will have the opportunity to report on the real-world adoption and legitimacy of blockchain and cryptocurrencies.

All this means that, once the news broke, XRP surged around 9.74% in less than an hour. At the time of writing, XRP is up 9.06% and trading at $0.318.


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Author: RICHARD ALLEN
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Ripple to Provide Its Services to Four More Companies

According to Fortune, Ripple announced that it would provide its services to 4 more financial institutions.

Last year, Ripple surged its way to become the second valuable cryptocurrency by market capitalization. However, on January 2, Ethereum regained its second position.

Ripple persistent effort to partner with financial institutions seems to be a game-changer for the San Francisco-based blockchain start-up. Over the last few months, the company has secured several important partnerships.

Euro Exim bank is one of the Ripple’s new partners. As reported yesterday, the bank will be the world’s first registered bank to use xRapid for cross-border payments. Speaking to Fortune in an interview, Ripple CEO Brad Garlinghouse said:

“This is consistent with Ripple’s vision of XRP as a fast and inexpensive source of liquidity for cross-border transactions. Instead of banks having to maintain foreign bank accounts, the idea is for them to buy XRP with dollars or euros and rely on local market makers to exchange XRP into local currencies.”

Even so, some of the Ripple’s new partners have said they won’t hold any XRP. Rather, they will use the coin to facilitate international payments.

The other four companies that are set to ink deal with Ripple are: SendFriend, FTCS, JNFX, and TransPayGo. The companies have confirmed they will be using XRP to boost liquidity when sending international payments. Brad Garlinghouse said:

“2019 is the year the wheat will be separated from the chaff. Not many months ago, the media was saying no one will use XRP, which made for good skeptical headlines, Today, you can’t say that as people are starting to use XRapid because it’s better, faster, and cheaper.”

This news comes barely days after Ripple Labs announced that more than 200 financial institutions had joined its network. The company now operates in over 40 countries across all continents.


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Author: Solomon Magawi
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Santander Outperforming Competition Thanks To Ripple

The banking giant Santander has said that its Ripple powered payments app OnePay FX is providing its customers with the possibility to send cross-border transactions at much faster speeds than the competition.

Back at the Santander International Banking Conference in Spain, the executive chairman Ana Botin highlighted the performance of the new mobile payments app which will run on Ripple’s blockchain software solution xCurrent.

“You can do FX transfers, real-time, between the UK and continental Europe. And you can actually do Poland, Brazil and Chile – through Santander – for the same cost as Transferwise… and that is the reason why we need to really think about what is real reciprocity. The devil is in the details and the timing.”

In contrast, the instant payments that are processed by TransferWise are only delivered within the UK through the instant FPS payment system. According to a representative from the company, the payment delivery in other places around Europe and around the world isn’t as fast. Both Santander and TransferWise are playing a key role in transforming the classic pace of worldwide payments which have long taken two to three days to complete through conventional cross-border channels.

It was back in April when OnePay FX was launched by Santander which gave millions of customers in Europe access to real-time cross border payments. According to the Daily Hodl, Botin said that the technology is currently powering 50 percent of Santander Group’s FX payments.

“With this new initiative that is already in place, we’re actually covering 50% of all the FX payments that the Santander Group does annually. and it works really well, because the rails that we’re using – which, as you say, we’ve collaborated with Ripple – we’ve been testing those for two years, actually with our own employees. And it works. It’s safe. It’s fully compliant, and obviously, we’ve made sure we comply with all local regulations. So you’re in safe hands.”

In the end, though, the chairman has said that the banking giant is looking to stretch out the companies operations including OnePay FX and providing the choice for the non-banking customers to use the app to send money across the globe.


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Author: Robert Johnson
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Ripple and Swift Get Set for Epic 2019 Debate on the Future of Cross-border payments

Ripple Labs Inc., one of Silicon Valley’s most valuable start-ups, and global payment infrastructure Swift – will go head-to-head at the 1TC Conference in Rust, Germany.

Marjan Delatinne – Global Head of Banking at Ripple and Wim Raymaekers – global head of banking at Swift will give their two cents on the future of cross-border payments. The two are perhaps unknown outside technology circles but are outspoken figures.

According to Daily Hodl, the event organizers confirmed that the two international payments giants which have been at war with each other would discuss the following.

“How will technology affect our daily lives as treasurers, with the banking sector challenged by new concepts and ideas? Are established banking structures going to be turned on their head? SWIFT and Ripple take a look at the future of global money transfers and propose that their specific concepts are set to replace all other approaches. What will the future look like?”

CEO and founder of corporate Treasury management company Bellin – Martin Bellin – will moderate the debate – which is set to take place in February.

Ripple wants to overtake Swift

Ripple,(XRP) has been intensifying its efforts to replace Swift as the de facto network for international payments. While Swift underpins the movement of trillion of dollars on a daily basis, it is extremely slow, expensive and inefficient. Ripple, on the other hand, claims to enable instant, secure and almost free cross-border transactions. The company uses its native token XRP as a proxy for customers looking to convert fiat money. And, it has already partnered with dozens of financial institutions worldwide including PNCAmerican Express and Standard Chartered.

According to the CEO of Ripple Brad Garlinghouse, Ripple is looking to push Swift out of the remittance market completely and dominate the international payment industry. “What we’re doing and executing on a day-by-day basis is, in fact, taking over Swift,” he said.


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Author: Solomon Magawi
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Signs That China Is Bullish On Cryptocurrency Future

Over the last two or three years, China’s relationship with blockchain technology and cryptocurrencies can be easily regarded as a love-hate one.

However, as of late, there have been numerous reports hinting at the incredible attention the Chinese government towards cryptocurrencies. In fact, there have been numerous reports of a cryptocurrency launched by the Chinese communist government.

Considering China’s economic power, its international prowess, and its immense population, there’s no wonder that such a cryptocurrency could very well surpass Ethereum and even Bitcoin in popularity.

Before we dive deeper into the subject and analyze all the signs that China is bullish on cryptocurrencies, we will discuss China’s past events related to crypto, to the country’s current stance regarding cryptocurrencies and blockchain, as well as previous developments regarding legislative decisions.

Past Legislative Decisions Regarding Cryptos

If you’ve been passionate about crypto for the last two years, you probably remember that one of China’s most controversial legislative decisions regarding cryptocurrencies was to ban ICOs and any activity if any entity is raising virtual currencies.

The Chinese government declared then that the selling and distribution of tokens is an illegal fundraising method and, hence, a form of financial fraud punishable by law. Things didn’t stop here, as the Chinese government also blocked all websites related to crypto trading and ICOs, including foreign platforms. Still, regulatory bodies have been more favorable.

Following these decisions, advertisements for cryptos were also removed from the mainstream media. Back in April 2018, China put a halt to hosted blockchain events as well. So, considering all these aggressive and extreme decisions that display a rather bad stance on blockchain technology and cryptocurrency, it’s surprising that China is, in fact, bullish on blockchain and cryptocurrency developments.

China’s Current Stance On Cryptocurrencies

According to People’s Bank of China (PBOC), cryptocurrency investments (at least uncontrolled ones) can harm the Chinese economy and potentially pose a risk for the Yuan.

In short, the government has made its stance on crypto very clear: it doesn’t want them, and will not tolerate them, especially if they are external and not entirely controlled by the ruling power of China.

Be that as it may, the PBOC also released various statements saying that the research and development of cryptocurrency and blockchain technology is a top priority for China. This means that China’s central bank acknowledges the fact that crypto will replace paper money inevitably and this requires some research in order to take the best possible decision.

Interestingly enough, it is said that the Chinese government has invested and backed up various local crypto projects, such as Xiong’An Global Blockchain Innovation Fund, which supports many blockchain startups. According to several sources, the government offered at least $3 billion to fund emerging blockchain projects.

President Xi Jinping has also made a public televised appearance and called blockchain a “breakthrough” technology.

Why China Might Need Its Own Cryptocurrency

Despite all the bans and the controversial attitude towards blockchains, the national cryptocurrency started to circulate in two Chinese cities (Shenzhen and Guiyang). The national cryptocurrency in China is far from being a secret, as Zhang Yifeng, the chief of science and technology at the Banknote Blockchain Technology Institute admitted on numerous occasions that China is working on it.

The PBOC needs a digital coin in order to bring all cryptocurrencies back under the state control. It’s worth noting that, before the ban, China actually had one of the largest trading volumes of all countries. Not only that, but China also has a big number of crypto enthusiasts and crypto miners, not to mention crypto mining farms.

Ether and Bitcoin (as well as other cryptos) are still used in China to conduct illegal transactions and money laundering operations. The Chinese government wants to introduce its own cryptocurrency to solve these problems and also to make miners switch to mining a government-backed cryptocurrency. With these moves, the Chinese government hopes to reinstate control over all financial operations within the country.

There’s still not much information whether the coin will be ChinaCoin or CryptoYuan, but one thing is for sure: China will join the ranks of Russia and Venezuela who both have the same types of financial aspirations.

One interesting point of view is related to what effect will this cryptocurrency have on the crypto market once it hits mainstream adoption in China. There are those who are afraid that this Chinese cryptocurrency will actually crash the Bitcoin, Ripple, and Ethereum-powered market.

Conclusion

Considering everything that’s been said, it’s safe to say that China is not truly bearish or bullish on cryptocurrencies. The government does indeed accept the inevitability of crypto dominance over other traditional payment systems, but it still wants to retain full control over all transactions within the country.

In fact, China is very bullish on blockchain development and the government seems to have a long-term plan that started with the banning of cryptocurrencies last year. China’s authority finance institutions have announced that cryptocurrency and blockchain development will be a top priority for 2018 and, so far, everything acted out accordingly.

Many crypto experts agree that China will either “break” the crypto market or lead the charge towards a new bull market. It’s important not to forget that China’s influence on the international cryptocurrency market is immense.


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Author: UseTheBitcoin
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American Express: Ripple Powers Cross-Border Transactions ‘In a Matter of Seconds’

American Express is revealing the results of a pilot test of Ripple’s xCurrent solution for cross-border payments.

At the Wings of Change Europe conference in Madrid, Amex general manager of corporate payments Carlos Carriedo said Ripple’s technology has the potential to dramatically improve the sluggish status quo of international payments.

“We did a pilot. We did a test, partnering with Santander locally, and with Ripple to just do cross-border transactions.

Cross-border transactions continue to be complex and slow. And in a matter of seconds, through this test, our clients were able to transfer funds in a very transparent and seamless way, from one part of the world, to the other one.”

According to Carriedo, American Express sees a lot of potential in blockchain technology as a whole, and continues to invest in the technology.

“Blockchain is absolutely an option we’re looking at. Just to give you a sense, we have invested in a fintech lab based on blockchain technology, just to understand how to leverage this better…

So more to come. There’s still a lot of things that need to get addressed with blockchain as a technology. But it’s very promising.”

Back in November of 2017, American Express and Santander announced a partnership with Ripple to increase the speed of non-card transactions between the US and UK. Both Amex and Santander say they’re open to expanding the partnership worldwide, based on the results.


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Author: Daily Hodl Staff
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Breaking: Crypto Exchange Coinbase ‘Exploring’ Support for Ripple (XRP)

After months of waiting, the hopes and dreams of ripple (XRP) investors may finally be realized — at some point in the near future, anyway. Yes, XRP fans, crypto exchange Coinbase has confirmed that it is exploring adding support for the second-largest cryptocurrency to its platform.

The San Francisco-based Coinbase announced the move on Friday when it revealed that its adding support for a “broad range of assets” — more than 30 were explicitly named — including other market heavyweights including cardano (ADA), EOS, NEO, and tezos (XTZ).

Source: Coinbase

XRP investors had long complained that ripple was not listed on Coinbase, the most popular crypto exchange for first-time buyers in the US and many other jurisdictions, even as the company listed smaller cryptocurrencies such as 0x and seemingly more controversial ones such as zcash — which can be used to make anonymous transactions.

The announcement follows Coinbase’s decision to revamp its listing process, which the firm said would allow it to provide support for a much larger range of cryptocurrency assets, though some would not be listed in all jurisdictions due to local regulations.

Of course, “exploring” is not the same thing as “listing,” and Coinbase stressed that the company “cannot guarantee” that every cryptocurrency named in the announcement will make its way onto Coinbase Pro and Coinbase.com. Moreover, some cryptocurrencies may only receive limited support.

From the post:

“Adding new assets requires significant exploratory work from both a technical and compliance standpoint, and we cannot guarantee that all the assets we are evaluating will ultimately be listed for trading. Furthermore, our listing process may result in some of these assets being listed solely for customers to buy and sell, without the ability to send or receive using a local wallet.”

Even so, the confirmation that Coinbase is at least evaluating the addition of XRP to its platform is a marked departure from earlier this year when company executives suggested that the firm had listed every asset for which it believed there was regulatory clarity. XRP, like many other cryptocurrencies, has been plagued by accusations that the token is a security and that blockchain startup Ripple — with whom it is closely associated — issued it through an illegal securities offering. Ripple denies those allegations.

Developing…Check back for updates


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Author: Josiah Wilmoth
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This is how and why Ripple’s XRP tokens will be used by the banks

The controversy around Ripple and their centralization, premined coins and influence of banks aside, Ripple Labs is all about improving the speed and cost of cross-border payments.

It seems that Ripple’s broader XRP strategy is to generate demand for rapid settlement. Ripple is positioning XRP as the rapid settlement technology to go with those rapid payment systems. All of their payment technology is designed to settle with XRP.

The beginner Ripple product gets banks’ feet wet – with xCurrent and xVia where they don’t have to use XRP. Once there it is easy to gravitate to the next gear, the next product – xRapid. Like an extra gear on the car you already know. It is inevitable.

xRapid is the only Ripple product that uses XRP. Other offerings such as xVia and xCurrent are systems that currently do not require/utilize XRP.

In other words, if the 100 banks you have signed up have no interest in xRapid, there will be no change to the price of XRP.

With xRapid Ripple aims to eliminate delays in global payments while also dramatically lowering cost. xRapid leverages the technology behind the digital asset XRP, to make cross-border payments truly instant.

Some aggregated results from several pilots of xRapid indicate this Ripple net has a bright future ahead to the joy of XRP holders.

For payments in the critical remittance corridor between the U.S. and Mexico, financial institutions using xRapid saw a savings of 40-70 percent compared to what they normally pay foreign exchange brokers. An average xRapid payment took just over two minutes, compared to today’s average of two to three days when sending cross-border payments. The portion of the transfer that relies on the XRP Ledger takes two to three seconds, with the additional processing time attributed to movement across the intermediary digital asset exchanges and local payment rails.

A payment journey with xRapid looks like this: a financial institution connects directly to digital asset exchanges in both the originating and destination corridors. The originating currency is exchanged into XRP which provides the necessary liquidity to power the final payment, and then in seconds that XRP is exchanged into the destination currency in the second digital asset exchange. Once this transaction takes place, the funds are sent out on the local rails of the destination country for payout. The transaction is tracked end-to-end, and the result is a cross-border payment that is cheaper and faster than ever before.


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Author: Torsten Hartmann
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