XRP Ripple Going To Replace The Entire Banking System | XRP Ripple Altcoin

HEY INSIGHTERS! With XRP replacing the entire banking system,
will it replace Bitcoin too? What will all be the impact of XRP price? Welcome to our channel Financial Insights.
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watch this video till the end! Before going to the crucks of the video, let
us see briefly what is Ripple XRP and how it is different from bitcoin, and what all
of this has to do with the banking system. You see, global currency conversion and transferring
money have always been problematic, slow, expensive, and relatively limited systems.
Most of the time, banks do not have any direct line to send across money from one bank account
to another, for the same it has to go through several other banks, which makes international
wire transfers so slow and costly as each of the banks takes their own sweet time to
process including the addition of fees.

In similar words, the banking system today does
not have a uniform set of rules for transfers; instead, you are required to find paths for
the transfer; this is why RippleRipple is in the picture, it is a real-time gross settlement
system, currency exchange, and remittance network; it is a US-based technology, released
in the year 2012, three years after Bitcoin; similarly how Internet moves information around
the world, RippleRipple moves money value around the world. The creator of Ripple, RippleLabs,
aimed to create an "internet of value" wherein money can flow as smoothly as the Internet
does; that will make transfers and conversions of money cost-effective, faster and smoother.
Let us now understand how does it all work; Ripple Labs have their own set of rules knowns
as Ripple Transaction Protocol, otherwise known as RTXP; they have a network of computers
all over the world, known as validators; they have a ledger, including all information about
the network users, this ledger employs the native cryptocurrency known as XRP; it is
the work of the validator to look whether or not the rules are being followed; companies
can use gateways run by banks to enter into the ripple network.

Ripple offers businesses
an alternative banking system in the form of an Internet of Value called RippleNet.
The type of currencies that can be sent through the Ripple network makes Ripple different
from other cryptocurrencies. Unlike others, RippleRipple has two currencies, IOUs and
XRP; IOUs can be stored in a wallet, representing debt. Then comes XRP, it is a currency issued
by Ripplelabs to help transfer payments through the Ripple Network. For instance, in case
of a significant transfer of money, the bank can simply convert the money into XRP and
send it across the XRP to the recipient bank, in that way, banks could avoid the need for
multiple intermediary banks; XRP is an actual cryptocurrency asset, and with the worldwide
increase in the value of cryptocurrency, XRP has become the start for the solution of an
alternative banking system, as a digital currency to deal with the buying and selling digitally,
it has no record, unlike our money which has numbers issued by the government; XRP has
the ability to exchange into any currency with a minimal unified commission becomes
a huge advantage.

Several banks, namely Axis Bank, Star one Credit Union MUFG, and Cambridge
Global Payments, use Ripple as a safe and secure method for transferring money. Official
Monetary and Financial Institutions Forum, published a report, by conducting a survey
with several banks and financial institution on disadvantages of the SWIFT network; the
information presented the blockchain technology as a solution for various departments, and
the forum also present Ripple'sRipple's products as a solution; stating that, blockchain technology
is favourable for multiple banking functions and the technology on which Ripple's XRP operates,
namely the DLT technology can improve the security, transparency, speed, traceability,
cost and risk management; A bank can allocate less liquidity for services, however can receive
same amount of transaction volume in global payment, for which the report gave a negative
connotation about eliminating SWIFT's process replacing with an XRP protocol; SWIFT was
concluded as costly, involving many obstacles including several parties' presence, also
few institutions reported that SWIFT is not decent for corporations, in accordance to
the report, XRP becomes the new SWIFT for banking system.
Here are few reasons why banks love RippleRipple 1.

Ripple is centralized
The "record book," named Ripple Consensus Ledger (RCL), is centralized, and XRP is RCL's
Native token. Ripple's system is made for banks on the basis of trustline consensus;
there are 100 billion XRPs created, and no more will be created. However, the number
of XRPs will decrease as it gets consumed for every single transaction made. 80% of
the XRP supply is locked up and kept away from the public; interestingly, what makes
RippleRipple this famous is because it is almost transaction fee-free since 0.001 XRP
is used as a standard cost to make a transfer, by settling payments in just 4 seconds whereas
banks usually take around 3 to 5 days; the XRP ledger has the ability to sustain 1500
transactions per second. This feature is imperative for XRP to become a globally recognized payment
method; On commodity hardware, 24 hours a day, greater propensity to handle them throughout.
A significant feature that makes XRP different from other digital currencies is its ability
to keep a track record of more than five years; there have been no significant problems with
RippleRipple after its inception in 2012.

Ripple offers products like xRapid, xVia,
current to companies in order to optimize their solutions for the transfer of money
around the world. xCurrent is Ripple'sRipple's flagship product, and it enables efficient
cross-border payments. 2. Banks saving BILLIONS of dollars
Banks could consolidate their liquidity for global payments into one XRP accounts instead
of holding local currency into Nostro accounts, directed by the message sent over by a SWIFT
network; this single XRP allows respondent banks to allocation the total liquidity into
the same volume, for the same they will only have to hold a domestic currency, maintaining
one account with XRP; the only minimum amount of XRP is needed for their most significant
expected payment, as XRP allows banks to access liquidity on demand; markets are directly
made between domestic currencies and XRP, this way banks minimizes intermediaries and
respondent bank can save upto 42 percent on cost and 60 percent at XRP gains usage, with
a decrease in Volatility.

XRP can be used for banks for bridging the
intermediaries among borders, as they can use the local currency of the country to buy
XRP; after that, the bank will buy the currency of the foreign country using the XRP, and
that will be used for payments, based on the trustline consensus, the ledger cryptographically
secures and records the transaction. In more straightforward ways, XRP helps the banks
not to hold currencies for transfer; hence, if a bank is not holding currencies, intermediaries
won't be necessary. When Ripple's XRP is used for every retail
transaction and cross border currency exchange or transfer, then the price per XRP token
will reach ten thousand dollars, which is likely to be achieved within five years; XRP's
price action has been increasing after its last break out, making a bullish trend on
its price. Central Bank Digital Currencies, otherwise known as CBDC, a high-security digital
instrument run by the central bank, all the future financial systems will be based on
CBDC; Ripple has recently announced an extended plan on its XRP, on building a core component
to power XRP as the world currency; through this XRP's usage will increase massively,
leading to the increase in the price of XRP; all these ambitious plans of RippleRipple,
it gets accepted then XRP investors will be on the moon, as there is a very high possibility
of XRP becoming the world currency.

Ripple's XRP has been dealing with a lawsuit
with the US Securities and Exchange Commission, otherwise called SEC, since December 2020;
where SEC has alleged that RippleRipple was pre-issued, the CEO of Ripples and Chairman,
Brad Garlinghouse and Chris Larsen sold over 1.3 billion dollars in XRP, promoting the
token from the beginning of 2013 in unregistered securities. Also, it alleged that billions
of XRP had been distributed in exchange for non-cash considerations. Due to the lawsuit
initially, the price of XRP decreased; however, XRP's price is at its three years high, which
is increasing further due to the same lawsuit. The central feature that makes RippleRipple
distinctive from the other currencies, and for which it was originally created, to be
able to transfer a large sum of money quickly and at a low cost, this is a massive reason
for RippleRipple to become an efficient replacement for alternative money transfer platforms;
having the potential to disrupt the traditional cross border payments, becoming the new standards
for the sectors, XRP is currently with the highest potential out of all cryptocurrencies
in showing an uptrend, with more and more adopt RippleRipple as an alternative banking
system functions; moreover, XRP is the most benefited from this pandemic, where the banks
are burning out due to inflation, making a perfect situation for XRP to become the global
currency.

With that, we have come to the end of this
video. Do let us in the comments; How much do you think XRP will be?
Thank you for watching! And make sure to subscribe and check out our other Valuable videos!
See you soon at Financial Insights! Reference: (Do not read)
https://www.youtube.com/watch?v=72Jed52yqjM&t=27s.

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