Ripple, the company that created XRP, has been one of the big companies leading the pack in terms of development of blockchain-based products. The products are focused on providing solutions to the many financial institutions struggling with the shortcomings of the current system. Top among the issues facing banks is transaction processing speed. Ripple’s technology aims to tackle that problem, and that’s where XRP comes in.
Ripple As The Game-Changer
Ripple’s customers especially the banks joining the RippleNet use XRP as the base currency for funds transfer. However, Ripple has made it clear that the company and the cryptocurrency are two separate entities. In fact, as the company’s Chief Market Strategist Cory Johnson puts it, XRP can survive just fine without Ripple. Cory was speaking in a recent Fintech Focus Podcast interview.
In the interview, Cory Johnson had a few very important facts to put across. First, he expressed his dissatisfaction with the traditional systems. How comes people can share memes, documents and even emojis so fast and easily, but they can’t do the same with money? He noted that such issues are the core problems that Ripple wants to solve for the world. With Ripple’s technology, people can send money just as instantly as they can send and receive text messages.
XRP Vs Bitcoin And SWIFT
Cory Johnson didn’t mince his words in proclaiming XRP as comparable to a more advanced version of Bitcoin. XRP is much like Bitcoin, but it’s faster, its network is more scalable, and its transaction fees are negligible. In his own coined expression, Cory referred to XRP as “Bitcoin 2.0.” In a recent tweet, Cory even took issue with Bitcoin’s alleged carbon emissions in mining operations and its massive power consumption. Since there’s no XRP mining, the crypto excels better than Bitcoin in that respect.
However, Cory doesn’t really see XRP as being in competition with Bitcoin. He sees it as a new fund transfer system putting up a fight against SWIFT. SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication, a system that Johnson says has failed in its mission to provide fast and reliable money transfer services.
Ripple Is Gaining Ground
Since Ripple has partnered with banks and uses XRP as the base currency, there arises an issue in regulatory policies. For one, Cory Johnson isn’t happy about the sluggish manner in which the authorities are dealing with the challenges facing the crypto world. In his view, the authorities need to be more active and fast in streamlining the industry and enforce a more legitimate and secure crypto environment. He cited scams, money laundering, and criminal activities as some of the serious issues plaguing the industry.
However, Cory noted that Ripple’s strategic partnership with financial institutions has put in place concrete procedures to ensure adherence to regulatory policies. Some of these include clear protocols in customer verification and safe-guards that prevent laundering and other criminal activities within the network.
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