Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The American economist said that Ripple’s XRP-based solutions address the concerns of modern banking and thrive on the failure of banking systems like SWIFT to adapt to today’s world.
XRP is one of the worst performers this year, among the top-ten cryptocurrencies. However, economist Jeffrey Tucker has praised XRP that is actively used by Ripple in its solutions. And he even called it a “brilliant technology”. Tucker, who is currently the editorial director at the American Institute for Economic Research (AIES), expressed his views during an interview on the “Boom Bust” episode on Russia Today.
He added that Ripple is currently riding on the failures of the traditional SWIFT banking system. Tucker further went ahead in praising XRP saying that it has the ability to change the world. The American economist compared Ripple’s technology with SWIFT on the relevance of cross-border money transfer.
Failure of Legacy Banking System
He also said that Ripple is offering these services when legacy financial systems failed during this rampant globalization. The interviewer asked Tucker that if the Ripple technology is so powerful, why doesn’t it translate in a good performance of XRP.
Responding to it, Tucker said that XRP is a “specific kind of crypto”. Thus, it makes it uninteresting for regulator investors to invest in this digital currency. He added that if investors are not willing to buy XRP doesn’t mean the technology behind it is powerful. Tucker added:
“That does not mean it’s not going to change the world. I think it’s an extremely important technology because it’s thriving off the failures of this antique SWIFT system.”
Tucker added that the Ripple’s next-generation technology holds the potential of overthrowing old systems. He added that XRP-based technology addresses the concerns of new-age banking systems and globalization. Tucker said:
“Our legacy financial systems are incapable of dealing with the new age of globalization so taking crypto to kind of fill this market niche… and XRP has been really valuable in that sense.”
XRP Not a Security
Over the last few months, Ripple has faced multiple lawsuits claiming that XRP is a security token. Some of the plaintiffs have previously claimed that Ripple sold the XRP tokens as unregistered securities during its ICO. However, Ripple has repeatedly defended its position claiming otherwise.
When asked to Tucker, he outrightly opposed to classifying it as a ‘security’ token. Tucker added that the Federal Security Laws in the U.S. don’t apply to Ripple’s cutting-edge technology.
“What we are trying to do is reclassify these super-modern 21st-century technologies and old 20th-century categories. It doesn’t actually make any sense,” said he.