XRP Designed for Banks, Documents Reveal
3min read Crypto researcher SMQKE recently presented documents that assert XRP is designed for banks. This assertion was made in response to a post from Panos Mekras, co-founder of Anodos Finance, who had stated that XRP was initially developed for peer-to-peer use but Ripple shifted its focus toward institutional adoption. SMQKE's documents aim to demonstrate that XRP, the cryptocurrency developed by Ripple, is specifically tailored for use in the banking sector.
SMQKE's documents outline Ripple’s business model and its integration with financial institutions. One document states that Ripple’s business model centers around its digital payment protocol, the XRP Ledger, and that financial institutions must integrate their systems with the XRP Ledger to utilize Ripple’s services. Another document highlights that this integration enables banks to send and receive payments seamlessly using Ripple’s native digital currency, XRP.
A separate document examines Ripple’s cross-border payment strategy, explaining that Ripple intends to use XRP as a ‘bridge currency’ to make transactions cheaper and faster. It further states that Ripple provides banks with software access to its network, allowing them to execute transactions without requiring a unified accounting system. The document also notes that Ripple’s xRapid product enables nearly instantaneous transfers using XRP.
Another excerpt references Ripple’s transition toward institutional adoption, stating that the company pivoted towards cross-border payments in 2015. It details Ripple’s regulatory challenges at the time, including compliance with the US Bank Secrecy Act and securing a New York State BitLicense for “institutional sales of the cryptoasset XRP.” The document also states that Ripple had pivoted towards financial institutions to partially outsource regulatory compliance, serving banks rather than individuals.
The commentary from both parties reflects differing perspectives on XRP’s intended use case. While Mekras acknowledged that Ripple had pivoted toward banks, he maintained that XRP was created for peer-to-peer transactions. SMQKE, however, pointed to official documents highlighting XRP’s integration with financial institutions, reinforcing his claim that XRP is designed for banks.
The presentation of these documents by SMQKE is a significant move in the ongoing debate about the utility and purpose of XRP. The documents are expected to provide concrete evidence that supports the claim that XRP is intended for use by financial institutions, particularly banks. This could have far-reaching implications for the adoption and integration of XRP within the traditional banking system.
The assertion that XRP is designed for banks aligns with Ripple's long-standing position that XRP is a tool for facilitating cross-border payments and remittances. Ripple has consistently marketed XRP as a solution for banks to reduce the costs and time associated with international transactions. The documents presented by SMQKE could serve as a validation of Ripple's claims, potentially paving the way for increased adoption of XRP by financial institutions.
The timing of this revelation is particularly noteworthy given the recent legal developments involving Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC has dropped its appeal against Ripple, marking the end of a years-long legal battle. This legal victory for Ripple has cleared the path for the company to explore other financial products and potentially gain regulatory approval for an XRP Exchange-Traded Fund (ETF).
The potential approval of an XRP ETF could significantly boost the market capitalization of XRP, as some projections suggest that it could reach $200 billion if institutional demand ramps up. This would be a major milestone for XRP and could solidify its position as a leading cryptocurrency in the financial sector.
The presentation of documents by SMQKE also comes at a time when the cryptocurrency market is witnessing the emergence of new players and technologies. For instance, Remittix (RTX) is a platform that allows users to instantly convert crypto into FIAT and send it directly to any global bank account. This platform aims to address the challenges associated with using digital assets for real-world payments, such as high withdrawal fees, slow exchange processing, and strict banking restrictions.
The emergence of platforms like Remittix highlights the growing competition in the cryptocurrency space and the need for innovative solutions that can address the pain points of traditional financial systems. The documents presented by SMQKE could provide a competitive edge for XRP, as they demonstrate its utility and potential for integration within the banking sector.
In conclusion, the presentation of documents by SMQKE asserting that XRP is designed for banks is a significant development in the cryptocurrency market. It validates Ripple's claims about the utility of XRP and could pave the way for increased adoption by financial institutions. The recent legal victory for Ripple and the potential approval of an XRP ETF further strengthen the position of XRP in the market. As the cryptocurrency space continues to evolve, the documents presented by SMQKE could play a crucial role in shaping the future of XRP and its integration within the traditional banking system.
