Ripple calls for clear regulatory and environment for crypto-currencies
Ripple works with a variety of authorities worldwide, the use of XRP in accordance with the local laws advance. Now Ripple has prompted once again to create clear framework conditions.
Breanne Madigan, Ripples head of global institutional markets, from leads in a new post, the most obvious area of application of XRP and other crypto-currencies in the payment industry. Many of the digital Assets represent a substitute for the financial value of the transfer to the traditional Banking. Also XRP (freely translated) is:
At Ripple, we see payments as the first obvious use case for digital Assets. An important Innovation in the use of a Blockchain for payments that you can increase the value of efficiently – and many of the following use cases for the Blockchain technology, including Trade Finance, Smart Contracts, and loans, are all taken directly from the field of innovations for new payment models.
For this reason, we initially focus on this basic use case. With digital Assets, there is for the first Time a possibility of transactions with different currency types, immediately handled – this contributes to the optimization of the risk management and reduces significant friction pain points such as time, capital reserves and excessive fees. If additional use cases to develop over the payment, you will get more capital into the space.
Madigan describes that Ripples main focus for XRP is to use the digital Asset as a bridge between Fiat currencies. The On-Demand-liquidity the company’s platform has been designed to offer banks and financial institutions in a fully compliant way to send money cross-border (freely translated):
Ripples task is between traditional financial institutions and technology innovators for the explicit application of the cross-border payment solutions. In particular, through the use of the Digital Asset XRP as a bridge currency, Ripple enables partners such as MoneyGram instant Fiat-to-Fiat-payments across borders.
There is not a single third-party or global Central Bank, which keeps track of how cross-border payments, and handled develop, so that the world has created a complex System of correspondent banks and Nostro/Vostro accounts, the estimated $ 10 trillion of capital to capture.
The use of digital assets (such as XRP) as a bridge currency, you can use this capital efficiently, and the process of cross-border money transactions faster, cheaper and scalable, by providing liquidity when required. Further innovations in the United States developed and pushed forward there is a need to create the regulatory authorities more clarity on how cryptographic systems should be regulated. Without clear guidelines, the US could run the risk of losing your competitive advantage as a market leader in new and emerging technologies.
Madigan sees the United States as a pioneer in the field of crypto currencies, should lead by example and, at last, clear terms for all actors involved has to provide (freely translated):
In the industry as a whole fears that a lack of clear, consistent guidelines from the United States could lead to a Talent Exodus, with the innovators and companies will move in regions with well-defined regulatory framework.
Undoubtedly, governments and political decision-makers are in view of the increasing maturity of the industry is of the opinion that more clarity on the rules is urgently needed. The United States and other innovation-friendly countries can set the tone for the Rest of the world will follow. And we hope that you will do it.
A uniform regulation of crypto-currencies in the world, remained up to today, furthermore, as the various opinion leaders of the countries not on a single strategy can have some. The new report by the international Bank for settlements describes that crypto-currencies could bedrohnen financial stability and the solution may lie in so-called stable coins. The great advantage of stable coins lies in a constant Werstabilität and low volatility go hand in hand, since stable coins currencies to traditional Fiat like the USD or the Euro are bound.
The most famous and largest Stablecoin (with a view on the market capitalization) is a Tether. However, Tether is suspected to have the Bitcoin market targeted by the “Printing” of new Tether manipulated. Currently Tether to a charge face-to-face, the further process and final result must be awaited.
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