Rumour has it that there is a new deal with banks to use Ripple (XRP) for faster and easier cross-border transactions, resulting in a skyrocketing altcoin. Just within the last 24 hours, XRP gained almost 70%, which is its peak point in 2018.
At press time, XRP equals $0.62 per token, not appearing significant when you think of Bitcoin, which values $6,705 per digital token. On the other hand, this means a bold upward move just within 24 hours, when comparing to the initial $0.36 per XRP. The increasing value created a rush on the altcoin, resulting in XRP being the most traded cryptocurrency over the last 24 hours, with an approximate volume of $2.2 billion.
Sagar Sarbhai’s announcement, from Ripple Lab, in the CNBC chat is the reason for this situation. He told that Ripple has partnered already with 120 banks, and the cryptocurrency product of the company, xRapid, would be commercially available in near future. Although there is not an established date, he said that the next month or so could be expected.
xRapid is a fast and easy alternative for international transactions by banks, which these banks could offer to their customer with possibly lower fees, theoretically. This may result in local currencies being converted into XRP for cross-border transfers and back into that currency at the other side.
We don’t know which financial institutions will potentially adopt the xRapid system yet; however, Ripple Labs, with significant partners such as Santander, American Express, and Western Union, has a number of potential customers.
As of its launch in 2012, Ripple has had tough times in the cryptocurrency world. Ripple is a centralized coin, contrary to Bitcoin and most altcoins; so, Ripple Labs has control over most tokens, and bank-like organizations are able to be taken into account with their approaches in this respect. Considering Bitcoin’s model inspiring its users like most altcoins created long since, this is the quite opposite of what the decentralized cryptocurrencies offer.