Ripple [XRP] is the third cryptocurrency in the market in terms of capitalization. Its value, like the rest of the market, has had a rough 2018, since attaining its all-time high in January. The company behind the XRP network has done a great job in securing several partnerships with banks and payment providers. All these deals target making XRP the currency of choice in cross-border money remittances and payments.
The cryptocurrency’s aim is to revolutionize the ways in which banks and payment providers move money across nations by providing the network and the liquidity. The solutions it offers, like xRapid and xCurrent, are tailored to make XRP the best currency for these cross-border payments.
And the network it offers has two advantages very many other products: it’s fast and cheap. In addition, the use of its recently launched cobalt algorithm makes it promise even higher TPS, up from 4 seconds per transaction to just 1 sec. That sounds great, for the eventual target of getting the threshold to upstage traditional methods like SWIFT.
But big questions remain concerning the impact of the Ripple leadership’s tendency to overemphasize on working directly with banks. It has seen the platform get referred to as being more centralized, going against Nakamoto’s vision of having a decentralized cryptocurrency.
What if the consortium of banks backed away from using XRP? There are a number of high profile banks using or testing ripple’s framework, notably among them Santander Bank and Standard Chartered Bank. The later has already developed a mobile app that will enable users to utilize blockchain protocol to send and receive payments in a number of currencies.
Standard Chartered has already rolled out a testing program between India and Singapore. While these are key steps, the conundrum revolves around global adoption. It’s one thing to talk to banks and completely opposite to when you need to convince clients on the ground.
What should Ripple [XRP] do?
The best case scenario is that all of Ripple’s partnerships work out. Especially vital is its deal with several central banks around the world. The worst case scenario is we see a crypto like Stellar Lumens snatch the deal from ripple. In this case, the ripple network would do well to open its network for other uses other than cross-border money payments.
The good thing is that the company doesn’t have to go outside its scope to find more use cases. This comes in the form of the just revealed probability that the Ripple network can be used to launch or host token issuance. If the startup were to warm up to the idea of ICOs n its XRP ledger, then the coin will find more uses. The bad news is that the top leadership doesn’t see the startup as one made for hosting crypto tokens. This is what it says about the possibility of ICOs being launched on its site.
“XRP Ledger is open-source and a decentralized platform, so people can build whatever they want, but Ripple isn’t interested in promoting or supporting ICOs on the ledger.”
But statements like this don’t make for any assurance from the Ripple. This, very likely, means that they will continue to focus on the single aspect of being the top choice for cross-border transactions.
In this case, then, Ripple [XRP] has one last hope in its arsenal: its community. It’s the most ardent of support and can see the coin go from strength to strength. However, its continued dalliance with the banking sharks could be bad for the Ripple coin. The future is bright, but the platform needs to be vibrant.