Will XRP be used in cross-border transfers? Original article! It's worth reading.
Will XRP be used in cross-border transfers? If it is not used, will its price decrease as a result of this? We will try to answer these questions in the following article. Why am I writing this article? The reason is simple: too much FUD threw in the forums against XRP. But where did this idea arise: "XRP has nothing to do with Ripple. If it will not be used in transfers the price or will decrease"? The idea was first issued by Bitcoin purists who see in XRP a currency that "breaks" the concept of cryptoccurency by collaborating with old fiat structures: banks.
And there would be a problem: my own mind. The human mind will take on any negative word, and it will climb it on a pedestal. I was amazed by the effect of a single negative proposition, thrown into a forum. It is the following proposition: "XRP has no future!" This propositions repeated in the forum as "XRP has no future?", 4-5 times different people. The peoples in the forum became panicked. Of course, here are the weak, uninformed minds. An uninformed mind can be easily manipulated. So read, inform yourself, do not invest randomly. And you should also be more careful about these negative suggestions, as they are called in psychology.
Here's what Joel Katz answers three months ago on Steemit to a user who did not believe in rising XRP because the currency would not be used in cross-border payments: "The plan is to generate the demand for XRP to be used as a settlement asset itself,,. David Schwartz (Joel Katz) is Chief Cryptographer at Ripple. David is one of the original architects of the Ripple consensus network. Prior to joining Ripple, David Schwartz was Chief Technical Officer for WebMaster Incorporated, a Santa Clara software developer. He developed encrypted cloud storage and enterprise messaging systems for organizations like CNN and the National Security Agency (NSA). Known as “JoelKatz,” he is a respected voice in the digital currency community.
I would say that this is the only right way, which can lead to the use of XRP as the buffer currency in cross-border payments. The Ripple team has focused on generating XRP demand at this time. How can this demand be generated, rather than providing a technology to test banks? Banks have two options:
use only the Ripple transfer platform. For this case, cross-border transfer costs compared to the classic SWIFT decrease by 30%.
use the Ripple transfer platform and the XRP currency. In this case, transfer costs drop by 60% compared to the classic SWIFT.
As you can see, point 2 is a stimulating method for using XRP. This "small" detail can make a difference. After the technology test period banks will choose. It is worth noting that the Ripple team is doing everything possible for the XRP currency to be used in transfers.
And yet if XRP will not be used in transfers, will this mean a disaster for its price?
How is XRP actually perceived? Many people dissociate XRP from Ripple. But is this the right way to look at things? XRP is actually perceived as "Ripple's currency" listed on Crypto Market. To have a comparison: XRP is something like 'AAPL shares' listed on the Stock Market. Specifically, all successes or failures of Ripple will be reflected in the increase or decrease of the XRP price. So XRP and Ripple are closely related. No one can guarantee at this time that the XRP currency will be used in the future for transfers.
As far as the adoption of technology by the banks that are testing it at this moment, I do not doubt that this will happen soon. An announcement of this kind may occur anytime until the end of 2017, or in the first months of 2018. I say this because the technology test period should come to an end. Let's hope Swell will bring us more news about the technology testing stages. The National Bank of Abu Dhabi (NBAD) may be the first to adopt this technology. They made an announcement a few months ago, saying they would soon adopt this technology.
As far as the XRP price is concerned, it is the lowest in recent months. The decrease in the price of XRP was caused by the decrease of the Bitcoin price, and the lack of positive news. What is the essence of this article? The XRP price will rise when banks announce the adoption of technology. If banks will announce that they use the XRP currency in cross-border transfers, the price will increase even more. I remind you that investing in XRP is not one for people who are not patient. Also, the price could rise when the 55 billion-euro blockade in Escrow is announced. This will happen until the end of 2017.
But whoever has patience will be rewarded by patience. Any rich person will tell you that he has not acquired his wealth overnight, but in years or even generations. I will forever hold 30% of the total XRP coins I have now. It is not known what values the XRP price can increase over 5 or 10 years.
The article is published for the first time on Steemit. Soon it will be published on the Ripplecoinnews.com blog, for which I write articles.