How Ripple will lose its coin identity

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One of the lead investors of Ripple in 2013 himself declared at the start of the year that he never believed Ripple would be seen as a coin. Kevin Rose believes that Ripple is limited as a currency, but it excels as a transfer.

In an interview with tech crunch regarding how he felt about Ripple. When Kevin Rose was the head of Google’s venture capital investment, he led a pitch where he told Google that XRP and the banking system would have a cordial relationship.

The relationship the investor was referring to was regarding implementing payment routing using XRP technology. Kevin Rose was able to see into the future and recognize that banks would inevitably want to evolve to keep up with Bitcoin’s growth.

Many countries worldwide have decided to open exchange services in their banks or to launch a crypto bank. Some notable examples of countries looking to expand are Lebanon, India, Mongolia, Switzerland, France, the US, and Latin American ones.

Ahead of the game is China with its digital Yuan. Ripple declared it would act as a bridge currency for cross-border processing payments but not for it to function as a typical digital coin.

The news

man sitting on bench reading newspaper

The manager of RippleNet discussed in a podcast on the 27th of November 2020 that Ripple would be able to collaborate well with Central Bank Digital Currencies (CBDC). He Argues that CBDCs would be transferred easily via RippleNet.

The founder emphasized that Ripple would help make international transfers easier. Ripple is losing its coin identity and further affirming its role as an exchange.

Today at 17:30 pm at the time of writing this article, the Ripple price started to fall.

People could be responding to Ripple’s news, further making itself known as an exchange rather than a coin. Investors may be jumping a sinking ship. Let’s take a look at the graph also to understand what is going on.

Ripple price change

Peering at the graph, we can see the fall in bullish momentum over the day. The Moving Average Convergence Divergence (MACD) becomes less dense throughout the day as the bullish activity slows down and eventually turns bearish.

There was -64 degrees of bearish movement from 10:00 GMT onwards. Investors are starting to see that the coin does not bear much weight as a form of currency.

How Ripple works

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Ripple is genuinely in charge of their destiny, and their motto is ‘instantly move money to all corners of the world.’ On their website, they target financial institutions and state that hundreds of financial institutions choose Ripple.

Ripple responds to the emergence of CBDC and focuses its energy on consolidating itself as an exchange. Naturally, people will put their money where their mouth is, so if Ripple does not believe it is a coin, why would people.

As investors peek at how the tides change, it does not take a genius to spot that Ripple does not want to be or need to be considered as a coin. Ripples’ further collaboration with CBDCs will mark the end of the myth that it could ever be a coin.

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Camomile Shumba

I am a freelance journalist that is always learning and investigating. I explore how current issues affect you. My training in journalism has enabled me to write thorough and compelling content.

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