Second-largest cryptocurrency ripple may have registered a huge success
A latest report revealed that the digital currency ripple has blown down its cryptocurrency rivals strongly because it has been working with large institutions, which give an aura of legitimacy as well as practicality to it.
However, the cryptocurrency enthusiasts said that centralization is the opposite of what the digital currencies technology should be about.
The CEO of digital asset exchange ShapeShift and a vocal advocate for bitcoin Erik Voorhees said that, the exact reason why ripple is surging so much is because it’s a bubble. He further added that, testing cryptocurrency with banks doesn’t make any sense. But the complete idea of crypto is you don’t need banks at all. It is not so interesting from the perspective of financial innovation.
Ripple may have run ahead of itself
Ripple is known as the name of a 5 year old start up firm which is based in San Francisco and is developing a series of payments network for several financial institutions. And XRP is the coin participants that can be used for transactions.
In October, the firm announced that over 100 financial institutions are using its network. These financial organizations like Mizhuho, Nordic bank SEB, Tokyo-Mitsubishi UFJ and Credit Agricole.
In the month of November, ripple told that the American Express FX international payments & Santander would make use of network of ripple for the cross-border payments between the United States and the United Kingdom. While various South Korean and Japanese banks are too testing network systems of ripple for cross-border payments.
An analyst at Canaccord Genuity, Michael Graham said that, “The ripple ecosystem is surely going to get a lot more in order to justify where XRP is right now. But the use case of XRP is quite clear which sets it apart from the other cryptcurrency assets.
When asked about which companies are using XRP, a representative of ripple pointed to an announcement of October that revealed that , a bank named as Cuallix is the very first financial institution who use XRP, in case of US-Mexico transactions. No other organizations were named.
The largest digital cryptocurrency by market capitalization, bitcoin is increase more than 25 % this year to around $17,000 or 1,500 % over the last twelve months. As compared to it, XRP jumped 35,000% to $2.30 last year and also soared about 67 % since to all time higher rate of $3.84 on Thursday.