XRP in Bitcoin evolution: Starting shot for Ripples xRapid

Ripple CEO Brad Garlinghouse has launched Ripples xRapid. The new system promises international payment services. The bank coin XRP plays a mediating role. However, the Ripple price is losing some of its strength.

On October 1st, Brad Garlinghouse, CEO of Ripple, announced the launch of xRapid. At the Swell Conference in San Francisco, the company also confirmed existing partnerships.

According to Ripple, xRapid will make cross-border transactions cheaper and faster in the future. XRP serves as a bridge between different currencies. When using the platform, currencies are first exchanged for XRP and then sent to the recipient. At the receiving party, XRP is exchanged back into the corresponding currency. Thus, the platform promises cost savings of up to 70 percent compared to conventional payment transfers.

Bitcoin evolution and Ripple Partners

CNBC reports that the product is currently used by three payment service providers. These are Mercury FX, Cuallix and Catalyst Corporate Federal Credit Union. Brad Garlinghouse told the news channel that he expects a Bitcoin evolution on the payment platform by the end of 2019. Dozens of banks dedicated to Ripple and Bitcoin evolution technology are expected to follow by the end of next year.

Attack on traditional payment system
Mercury FX and Cuallix are both payment service providers who already participated in the xRapid pilot phase of the project. Mercury FX plans to use xRapid for payment transfers between Europe and Mexico. Cuallix is also focusing on Mexico, but here it is payment services to the USA that the platform is designed to facilitate. The Catalyst Corporate Federal Credit Union also wants to use xRapid for cross-border payments. Brad Ganey, COO of Catalyst Corporate Federal Credit Union, explains:

“Traditional international payment processing does not meet today’s expectations in terms of price, speed and ease of use. The blockchain technology, and in particular Ripple’s xRapid product, solves all three challenges simultaneously. Catalyst Corporate will use the XRP digital assets through the technology platforms of our subsidiaries to immediately transfer money across borders on behalf of our more than 1,400 member cooperatives. We have signed a production contract and are currently expanding our plan.”

Ripple not unrivalled by Bitcoin evolution

The company around Brad Garlinghouse is not alone in its efforts to facilitate international payment transactions like in this review about the Bitcoin evolution (and to acquire them at the same time). With StellarX, the company currently has a promising Bitcoin evolution competitor dedicated to the same goal.

Ripple course shows little reaction
Surprisingly, the Ripple price did not continue to react to the announcement that the token would soon establish itself in the financial sector. At 0.56 US dollars, for example, the token lost almost four percent compared to the previous day. In the 7-day retrospect, however, it is still just under 25 percent plus. In the course of the month it looks even better. Here, the Ripple price has improved by a total of 65 percent.

XRP in Bitcoin evolution: Starting shot for Ripples xRapid

Own Digital Currency: China Balances Blockchain Technology

In a recent interview with the Chinese newspaper Caixin Weekly, the head of the Peoples Bank of China (PBOC) gave further details on the bank’s own digital currency, Zhou Xiaochuan said in the interview that the bank is also considering possibilities that are not based on blockchain technology. The electronic payment network will use mobile payment methods, cloud computing, secure chip solutions and blockchain technology.

Xiaochuan said, however, that there is currently no clue as to what the final product will ultimately look like:

“We will work closely with the financial industry and research to explore all new technologies in detail. We want to find out which technology provides us with the best conditions for issuing a digital currency and what risks are involved for each individual”.

On 20th January the PBOC announced for the first time plans for its own digital currency, triggering great speculation about the exact appearance of the digital currency. Until now, digital currencies were largely associated with Bitcoin and the blockchain.

Xiaochuan pointed out that the blockchain still requires too many “resources” in terms of computing power and memory capacity. In addition, many banks are of the opinion that the blockchain cannot process enough transactions simultaneously.

“We have to wait and see whether the problem can be solved in the future. The banks have invested some resources in research on this issue,” says Xiaochuan.

Privacy of the digital currency

One issue where Bitcoin in particular was closely scrutinized with regard to the digital currency of the People’s Bank of China was privacy. According to Xiaochuan, this feature is very important for the planned digital currency.

Even though all Bitcoin transactions are publicly visible on the blockchain, the technology offers a certain amount of anonymity through the pseudonymous address system.

Nevertheless, the digital currency will use many different “information technologies”, including cryptographic algorithms to protect against counterfeiting.

The article in Caixin magazine also raised the question of a possible “51% attack” on the Bitcoin network, with a Miner network providing more than half of the hashing power and thus influencing and falsifying transactions.

Xiaochuan replied that a blockchain based digital currency would run on an authorized network, which is safe from external manipulation.

Schedule
During the interview, Caixin Magazine also asked about a timeframe and when the digital currency would eventually replace paper money.

Xiaochuan pointed out that there is currently no precise timetable and it is unlikely that the digital currency will completely replace paper money.

“It takes months for a small country to issue a new version of paper money. In the case of China, the same step has already taken 10 years.”

Xiaochuan expects that when the digital currency comes onto the market, the fees for paper money payments will rise continuously to motivate people to use the digital currency.

Own Digital Currency: China Balances Blockchain Technology