Ripple’s XRP Granted with Approval for Money Transfers from U.S. Authorities

On May 20, 2020 at 2:17 pm UTC by Christopher Hamman · 3 min read
Photo: Shutterstock
Photo: Shutterstock

Ripple’s XRP has got approval for being used in cross-border money transfers from the U.S.Consumer Financial Protection Bureau. XRP price is rising now.

Ripple‘s XRP has received permission from America’s Consumer Financial Protection Bureau. This comes as the cryptocurrency token has been used as a medium for value transfer. As at the time of filing this report, the XRP price was at $0.21 (0.82% up). The Bureau indicated this in a recent report. It said that it was researching new patterns in the U.S. money transfer markets. Digital currencies were a part of that research.

The continued growth and expanding partnerships of companies like Ripple played a huge role in the remittance market. The Bureau stated:

 “The Bureau has continued to monitor…the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payment messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect a settlement of those transfers.”

This comes at a time when cryptocurrencies continue to face regulatory scrutiny. This scrutiny is coming from government agencies on their reliability and trustworthy nature.

XRP Price Rises after the Approval Despite Ripple’s Issues

Unlike most of the cryptocurrencies, XRP seems to be the darling of the current financial ecosystem. This has led to its adoption in the financial community.

Ripple Labs has had its issues. Its ability to draw on escrow wallets and burn them at will has drawn raised eyebrows from many. Many disgruntled investors have considered Ripple’s actions to be a part of extensive market manipulations. Lawsuits on this and others have followed.

This hasn’t dampened enthusiasm about XRP though. The mechanism of transfer the Ripple Protocol Consensus Algorithm (RPCA) has been one of the most-used transfer protocols in this year alone.

Ripple has also brought a significant amount of public attention to; cryptocurrency projects. This has translated into a significant amount of investments in projects.

New Possibilities

Ripple has also broken borders. With the closed-source nature of the financial system, XRP is nailing it. So much so that the U.S Consumer Financial Protection Bureau said:

 “To the degree banks and credit unions increase their reliance on closed network payment systems for sending remittance transfers and other cross-border money transfers, the Bureau notes that this could result in greater standardization and ease by which sending institutions can know exact covered third-party fees and exchange rates.”

This also has raised the question of the relationship between Rippel Labs and its token. Ripple Labs CEO Brad Garlinghouse has consistently denied the accusations of price manipulation. He has always asserted the independence of the XRP token from the company.

Ripple has some serious backing from heavy hitters. Google has invested an undisclosed amount in Ripple. This also shows that Ripple’s technology may be used across the board for all kinds of financial transactions besides remittance.

Ripple has been able to work with corporate partners. Its relationships have been without rancor. This has made Ripple labs to become one of the newest heavy hitters in the financial space.

As the financial space continues to look for options, the crypto-space has presented several of them. XRP might be the leader in the next bull market. Who knows?

Altcoin News, Blockchain News, Cryptocurrency news, FinTech News, News
Christopher Hamman
Author: Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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