The current week one of the most critical weeks for crypto of not only this year but also in its history. It is primarily because of Facebook’s cryptocurrency Whitepaper release. Bitcoin also headed closer to $10000, which, some analyst believe will begin the real FOMO in Bitcoin [BTC].
Ripple Vs Libra Association
Nevertheless, Facebook’s whitepaper release was individually considered bad news for Ripple, XRP, and the Banks as it aimed to replace the system with one of their own. However, the CEO of Ripple, Brad Garlinghouse, feels otherwise. He told in an interview,
“This week will probably be the best week of signed contracts at Ripple ever. Banks release that if Facebook is going to be a competitor in this space. They can’t compete with SWIFT.” He added, “This has been a call to action.”
Ripple and MoneyGram established a crucial strategic partnership this week. He mentioned that a couple of banks who were earlier delaying the integration with Ripple are now actively reaching out to Ripple. Moreover, he hinted at a probable partnership with Western Union as well.
MoneyGram stock price shot up by more than 150% as the news broke out. Interesting, XRP was rather unmoved by the announcement. Also, Facebook’s stock price has been on the rise since the beginning of the week. Garlinghouse suggested that “Blockchain is kind of an expensive database” and its efficient implementation is essential. Moreover, he said that there is a lot of hoax, misinformation, and speculation around the space.
On the hysteria brought on in the market, he said,
“Facebook did not launch a cryptocurrency. Facebook wrote a whitepaper about their intent and their plans that a year from now we’re gonna a cryptocurrency called Libra… MoneyGram deal was a bigger deal for the crypto-market.”
The utility of XRP and Bitcoin
While Brad elaborated on the competition between Libra and XRP, he agreed with David Marcus on Bitcoin’s utility. Both heads of centralized solution providers for financial institutions insisted this week that Bitcoin is a store of value. It is different from the ‘medium of exchange’ that they are trying to build with Libra and XRP, respectively. He said,
“I hold Bitcoin and I’m long Bitcoin. I think Bitcoin is a store of value so people hold it. XRP will be the bridge currency.”
However, Mati Greenspan was rather shocked at the statement, he tweeted,
For those of you replying with “he’s always been long bitcoin.” Here are two reminders that he hasn’t. Don’t get me wrong, I’m very glad he’s turned around. Also, sorry for not noticing sooner. 😀👍
With Ripple’s xRapid, the banks can facilitate cross-border transactions without pre-funding those specific currencies. He mentioned there is $10 trillion just sitting in banks to facilitate cross-border transactions, whereas xRapid performs the same without any collateral.
Furthermore, Ripple has always aimed at providing regulatory compliant products. He said, “There are zero transactions enabled by Ripple that aren’t KYC’ed.”
Do you think that the banks will be able to compete Libra by using the technology? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com