Already a major player in the cryptocurrency sector, XRP is set to expand further as earlier this month, Ripple partnered with the wire service company International Money Express (IMXI) – Get Report, or Intermex, which reportedly processes more than 30 million payment transactions annually.
In addition to benefiting XRP, the partnership will help leverage RippleNet for faster, transparent cross-border remittance services between the United States and Mexico. According to the World Bank, Mexico is the third country in the world to receive the most remittances yearly, hitting $36 billion in 2019. Most of these come from the U.S. Through Ripple’s On Demand Liquidity (ODL) service, Intermex will be able to exchange dollars for Mexican pesos through XRP, in only three seconds.
This will further boost XRP, which at $12.3 billion, is already the third-largest cryptocurrency by market cap, after Bitcoin and Ethereum. Following the collaboration with Intermex, Ripple’s global payments network now spans over 40 countries and six continents.
But XRP has some key differences from competitors such as Bitcoin. Instead of using blockchain mining like Bitcoin does, Ripple confirms transactions through a peer-to-peer consensus mechanism connecting a group of servers, thereby dramatically reducing cost and energy consumption, and increasing transaction thought to be on par with Visa (VISA) .
Through this system, Ripple aims to “enable the world to move money like information moves today” — a concept it calls the Internet of Value.
The Ripple Effect
By Tuesday, XRP global health is up 21-points (2.45%) since the beginning of February, driven by a 34-points (4.06%) increase in User Activity. Developer Behavior has also been steadily rising, up 10-points (0.91%) over this time period, along with a 12-point rise (1.5%) in Market Maturity.
FCAS is up 21-points (2.45%)
Developer Behavior is up 10-points (0.91%)
User Activity is up 34-points (4.06%)
Market Maturity is up 12-points (1.5%)
Our Hot Take
Blockchain’s association with cryptocurrencies is both a blessing and a curse. On one hand, cryptocurrencies are continuously enabling new use-cases to emerge. On the other, its use for illegal activities continuously discredits the undeniable game-changing potential of blockchain technology.
Ripple is very much aware of this issue, and actively asserts itself as a pro-regulation mediator between global regulators and the crypto industry. This has enabled Ripple to partner with traditional financial systems and implement real-world use-cases that have continued to drive network growth regardless of bearish trends. Indeed, Ripple’s CEO, Brad Garlinghouse, recently stated he is open to the idea of Central Bank Digital Currencies launching on its blockchain. It will be interesting to see the competition arise with Facebook’s (FB) – Get Report Libra, which is also directly appealing to national governments and regulatory bodies.
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