Ripple (XRP): Security Or Not, We Can’t Take Away The Benefits Of Using xRapid


Finally, Bitcoin (BTC) and Ethereum (ETH) have been let off the SEC hook: they aren’t securities. The market reacted positively to the news and prices have been trading in the green over the last 24 hours. For many XRP holders, the fear is that it likely will be declared a security going by comments made by the regulators.

Director of SEC’s Division of Corporate Finance, William Hinman, is quoted to have said that Ethereum (ETH) doesn’t qualify to be called a security. According to him, this is based on its structure in terms of being decentralized.

He said that:

“When we think about how Ether today is operating, at least, we see a highly decentralized network, not the type of centralized actor that characterizes securities offerings. In its current state, we don’t see value regulating it.”

These comments reflect on allegations directed against Ripple being more centralized as well as having two class action suits pending in US courts.

xRapid still the game-changer

Ripple has been working on its three blockchain solutions xCurrent, xVia, and xRapid. All these products have one thing in common- they are tailored to make moving money across borders easier and cheaper. However, the one that stands out is xRapid- designed to revolutionize cross-border payments and remittances.

Ripple has one very clear advantage in its efforts; it’s cheap and cuts down on time taken to send/receive funds internationally.

At the moment, all eyes will be on what happens in the end for the 3rd ranked crypto that is arguably the most aggressive in terms of seeking global adoption. No other cryptocurrency has the number of high-profile partnerships in the banking sector. At the moment, it’s one of the routes Ripple execs believe will lead to global adoption.

Earlier in May, CEO Brad Garlinghouse talked about this by saying that 2018 would be the turning point for the platform. Ripple’s chief said this when he spoke to CNBC at Money 20/20 during the Europe Fintech conference, and said:

“I’ve publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool.”

That isn’t all for xRapid. Although designed to make it easy to make payments around the world, the product could be what blockchain needs to impact positively on the entire world. It all boils down to how the solution can be used to make savings that will positively lead to a better life for others.

Ripple has looked at this and wrote about it, picking the cost-saving benefits. They come to a conclusion we should all agree with.

They say,”we’ve taken a look at the world’s remittance market and how specifically, our solution xRapid, if adopted on a global scale, could provide a lasting impact for families around the world.”

The benefits of xRapid

Global remittance costs about $30 billion annually. If xRapid is used, we can save about 55%, leading to savings of almost $16.5 billion. If such amounts are put to good use around the world, many families would have an improved life. I believe Ripple assessment isn’t very far from the truth.

For example, it’s estimated that the $16.5 billion saved could easily provide 3.27 billion meals, each at a cost of $4.13 for every meal. The funds can also help pay monthly charges for 263.07 million bills, with each averaging about $51.32.

Even more encouragingly, that money can be used to pay rent for 49.9 million people in developing countries. Each of these people could stay in a house that costs an average of $273.34.

That’s how xRapid could be useful, whether XRP is declared a security or not. These benefits shouldn’t be ignored. In fact, efforts to make the product adopted in mass should be supported.

That’s more encouraging is that this isn’t wishful thinking. Recent pilot results of the xRapid solution show that financial institutions could save up to 70 percent in costs. This is compared to what they lose or pay when using traditional foreign exchanges.

These saving can be of huge importance to those suffering the main effect- millions around the world who make cross-border payments.

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