This is why Ripple (XRP) is not going anywhere anytime soon
As international bank moves need from two to three days, it may be a positive sign for Ripple because its technology removes financial friction from such transactions. Before few days a note has been published in a press stating that Ripple announced their xRapid service experiencing a positive pilot testing that as compared to the traditional ways saves nearly 40 to 70% of the cost for financial institutions.
In just few seconds XRP cross-border transactions are completed and the transactions between US and Mexico are pilot tested. Here the work is done as, for example a US bank sends USD to the gateway where it is transformed into XRP and after that it is sent to Mexico where it is transformed into Pesos through another gateway. And all these transactions are completed just in two minutes in place of 2.5 day as usual. So we can say that in the coming days digital currencies will play a chief role by making things cheaper and faster for all.
Many big players have started adopting Ripple’s technology to do business because Ripple is acquiring new partnerships with major banks as well as financial institutions. Many viewers believe that at present XRP has been undervalued, because per token it was as high as $3. However, with the increase in demand, XRP may even rise.
Among money transfers, the most important are MoneyGram, Mercury FX, and IDT, and in order to do business, they all have adopted Ripple’s xRapid and Ripple’s XRP currency. Banks and other financial institutions can minimize costs and even grow consumer experience at Ripple’s xRapid platform. XRP replaces on-demand liquidity transfer for pre-funded liquidity and make things faster.
To make global payments, banks are using another Ripple solution such as xCurrent where immediate settlement is allowed and it can be traced throughout. The global head of infrastructure innovation at Ripple Dilip Rao said that all over the world central banks are inclined into blockchain technology to acknowledge the way in which it is able to transfer cross-border payments which results in less obstacles in trade and commerce for consumers and corporates both.
At present XRP is dealing at $.67 and the price is below the bearish trend line at $.78, which is the resistance level for Ripple having major support at $.72. Now the MACD on D1 is in the positive area, but it is likely to enter into the negative region.
Ripple displays itself as the only enterprise blockchain solution in the world to make global payments and the other institutions are behind them.
SWIFT which is also called the Society for Worldwide Interbank Financial Telecommunication is the chief way through which banks throughout the world can exchange money. And this includes over 10,000 members in 212 countries.
The traditional way, in which SWIFT work is like, say for example, in case an American bank wants to send currency to a Mexican bank, then the Mexican bank must have dollars whereas the US bank must have pesos. And throughout the world this situation is the same, though all the banks around the world do not have each and every currency. And so this way XRP is useful and it makes the transaction faster and easier. The cost and the time taken in the transaction may decrease because the institutional banks and governments adopt XRP.
Even though Ripple is faster, it still depends on mediators for exchanging XRP into fiat currencies. On this topic the XRP team declares that the part of the transfer that depends on the XRP ledger takes 2 to 3 seconds including the extra processing time credited to movement through the middle digital asset exchanges and local payment rails.
The bank game has already been changed by this coin. And it is very clear that in the long run some currencies will do well and others may not. And XRP is among those that are going to do well. Thus, xRapid and xCurrent are just a few reasons that support the fact that Ripple will remain in the crypto market.