From inception, Ripple, the Silicon Valley tech company, has made its goal known. Anyone who has been following up with industry news knows that Ripple aims at dominating the cross-border payment market on a global scale. This bit is clear. Last year, the company made major moves that brought it closer to this goal. By providing fast, borderless means of payment, Ripple has proven that it has what it takes to collect a share of the cross-border payment industry which is worth trillions of dollars.
Ripple Isn’t XRP According To Executives
Over time, the XRP token, one of Ripple’s products, has been casually called Ripple. On more than one occasion, the CEO of Ripple, Brad Garlinghouse has said that XRP is a standalone asset that isn’t controlled or manipulated by Ripple. This is because viewing XRP and Ripple as one would mean XRP is a security not a cryptocurrency. Since Ripple owns about 60% of the total XRP in circulation, it is difficult to plead the company’s case.
XRP (XRP) Price Today – XRP / USD
During the December 2017 and January 2018 price hike, the XRP token increased significantly against the USD. Ripple profited greatly because of the large portion of XRP in the company’s possession. Since then, there has been a lot of controversy about the relationship between XRP and Ripple. Many of the investors who lost during the bear market publicly questioned Ripple’s relationship with the XRP token. This is why, during an interview with CNBC, Brad Garlinghouse said:“During the bear market, the hype about the possibility of a new platform overtook reality. This is exactly what happened in the cryptocurrency space. Community members seem to have a religious fervor around the industry. This is a holy war we are fighting.”
Ripple Makes Progress Despite The Holy War
Irrespective of the attacks from critics and speculators over time, Ripple has continued to make progress in the cross-border payment space. During the bear market of 2018, when the price of XRP fell by more than 90% against the USD, Ripple was able to sign up two new customers weekly. On the 8th of January 2019, the company announced that it has crossed its 200-customers milestone indicating a 350% rise in the number of customers who send live payments through the network in over 40 countries.
Granted, Ripple has made a lot of progress for a startup. However, if it is to take a sizeable chunk of the cross-border market share, more work needs to be done. Swift, the dominant platform in the industry has over 10,000 member institutions across the world. So, Ripple has a long way to go.
The advantages Ripple has over traditional financial systems are many. For starters, sending money from one country to another using Ripple’s technology shortens the wait period. Global money transfers can be completed within seconds as opposed to hours, and days required in traditional systems. Ripple’s technology can achieve this because it uses cryptography to ensure that these transactions are secure even if all parties don’t have access to the ledger. Only permitted parties can see the ledger. This is what makes Ripple different from traditional blockchains.
Even if Ripple can’t become more dominant than Swift in the near future, simply taking a tiny piece of Swift’s market share is enough to make the company skyrocket in the next few years. When this happens, XRP will become the most sort-after token in the cryptocurrency industry.