Releasing yet another global announcement, Danny Aranda, Ripple’s Managing Director has yet again recited Ripple’s utility to the multinational banking industry, while saying nothing at all.
“I think a lot of what you see in the cryptocurrency space and in the blockchain space is really focussed on experiments or small proof of concepts.”
“But Ripple is really determined to make sure that we are focussed on serving real customers with real problems and our focus area is around cross-border payments and ensuring that we deploy cryptocurrencies as a better method to fund the liquidity for the cross-border flows which is a huge cost centre and a huge problem to that.”
WOW! Ripple is focusing on real customers, real problems and the focus area is around cross-border payments. BREAKING NEWS!
Whereas everyone heard Ripple’s countless (substantiated) promises to “revolutionise” cross-border banking transactions, this is how the system will work in practice:
Financial institutions that connect to RippleNet will gain access to the liquidity pool provided by xRapid. Banks buy into a shared pool managed by the network, selling currency for XRP, and then cashing out XRP for a different currency, potentially eliminating the need for corporations to store foreign fiat currency.
Of course, Ripple always positioned itself fairly low-key and was always regarded as a good choice of a longer-term investment vehicle.
Ripple does not neglect the mobile app business either: just in Japan, Ripple partnered with 61 (!) banks, adding to a collection of partners from Singapore, Brazil, Canada, China, etc.
Ripple’s director of joint venture partnerships:: “The release of the MoneyTap mobile app shows Ripple’s continued commitment to provide its partners across Asia and the world with blockchain-powered solutions that dramatically improve the customer payments journey.”
An interesting read is an interview with Ripple’s Global Head of Banking (a cryptocurrency firm employs a… Global Head of Banking?..), who explains that a San-Francisco-based company and the XRP token are district entities:
(MUST KNOW: XRP and Ripple should never be viewed as correlated entities)
MD: There is some confusion around what Ripple is and what are the digital assets XRP that have been gifted to our company Ripple. The currency XRP was designed for cross-border payments transfer, and if you are talking about rumors, you should distinct entities. The best thing that we are doing, I should say, is that we are working very closely with regulators and we do have a very stringent compliance and regulatory affairs at Ripple. We are collaborating with regulators, but don’t avoid them. We are educating our partners and working with them even closer to their projects. We cooperate with the Bank of England, and we have started a new project with Saudi Arabian Monetary Authority. So our approach is to continue this dialogue with regulators and ensure that they understand what we are doing with the cryptocurrency XRP.
Sometimes it is depressing to see how well some no-name-token performs in your portfolio, while the price of XRP does not tend to fluctuate even after what some would consider groundbreaking news, so while trading XRP requires a somewhat tailored approach. Partly, because XRP does not marginalise itself and works towards its goal.
Just remember that its uniqueness is not what Ripple’s MD thinks it is. Solving “real problems” or “real customers”? ORLY?
Hm. How much XRP would hiring a good speechwriter cost? Cause we see a real problem there, Mr.. Aranda.
“Ripple aims to improve the financial services infrastructure by making cross-border payments easier across the globe.
He added: “If I want to send money around the world – if my mother lives in the US and I’m living in Europe – that could take two to four days.
“It is actually faster for me to just fly over to her and give it in cash or FedEx it over than it is to send an electronic wire, which is incredibly crazy given the infrastructure we have today.”
Mr Aranda also said small movements can really affect the price of cryptocurrencies like Ripple and bitcoin.”