XRP is a popular cryptocurrency due to a number of factors that make it a strong contender, despite the legal challenges it faces. The first of these is the practical use it offers via the Ripple network, which is specifically designed to facilitate international money transfers between banks and financial institutions. Instead of relying on slow and expensive systems like SWIFT, XRP provides transactions that arrive in just 3-5 seconds, at a cost of no more than a hundredth of a dollar, making it an ideal solution for companies working in the field of cross-border payments.
The strength of XRP lies not only in its speed and low cost, but also in the extensive network of partnerships that Ripple has established with over 300 global financial institutions, such as Santander and American Express. These partnerships boost market confidence in the currency, making it part of the modern financial infrastructure.
Technologically, XRP is considered a greener currency compared to currencies like Bitcoin, as it does not rely on an energy-consuming algorithm (Proof of Work), but rather uses the more efficient Consensus Protocol mechanism. This makes it an attractive option amid the growing global focus on technological sustainability.
On the regulatory front, Rippel has achieved partial victories in its SEC lawsuit, with the court ruling that XRP trading on exchanges does not qualify as a “security,” a decision that strengthens the currency’s legal standing and reduces the risk of it being banned.
But despite these positives, challenges remain, most notably criticism of the network's centralization (as Ripple controls a large portion of the currency), and potential legal risks if court decisions change in the future.
In short, XRP’s strength stems from its effective role in international money transfers, its advanced technology, and its strategic relationships with major institutions. However, its success remains tied to its ability to overcome regulatory challenges and keep pace with developments in the rapidly changing cryptocurrency market.
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