🔍 Is this the banks' crypto? Ripple doesn't want to destroy the system... it wants to be its backbone.
Ripple and its cryptocurrency XRP are key pieces in the attempt to modernize the global financial system, especially regarding cross-border payments.
🌐 What is Ripple?
Ripple is a financial technology company founded in 2012 that developed RippleNet, a blockchain-based payment network. Its goal: to connect banks, payment providers, and exchanges to enable fast, cheap, and secure international transfers.
• It does not seek to eliminate intermediaries like other cryptos, but rather to optimize the current banking system.
• It has established partnerships with global financial institutions.
• Its approach has generated controversy, especially with the U.S. SEC, which questioned whether XRP was an unregistered security.
💸 What is XRP?
XRP is the native cryptocurrency of RippleNet. Its main function is to act as a bridge currency between different currencies, facilitating exchange without the need for accounts in multiple currencies.
🔧 How does it work?
• Premined: It is not mined like Bitcoin. Ripple Labs issued all XRP from the start.
• High speed: Transactions are processed in seconds.
• Low cost: Minimal fees compared to traditional bank transfers.
• Institutional use: Designed for banks and large financial players, not so much for individual consumers.
⚖️ And the controversies?
• Ripple was sued by the SEC in 2020 for selling XRP as an unregistered security.
• In 2023, a judge ruled that XRP is not a security when sold on public exchanges.