Within the world of Cryptocurrencies, stable is a word that can almost be characterized as laughable. Recently, with the exponential rise of xRapid software, it seems that things are going to become even hotter in the kitchen, despite the proponents of XRP stating that the code isn’t a part of the digital currencies success. The controversy surrounding XRP last week, namely the endless back and forth deciding whether XRP is, in fact, a form of a financial security or not, caused the prices to spark in all directions.
The various investors who initially put down collateral on the project should be in waves of euphoria following the rampant success of XRP; however, there is a sense of panic over whether the U.S. Securities Exchanges & Commission will officially categorize XRP as a security. This has caused a series of controversy amongst many parties, both in Ripple and outside that are slightly alarmed over the ramifications of having XRP classes as a security.
Who Is Ripple And What Is XRP
For those who are unaware Ripple has more offerings than just XRP, one other example is xCurrent. This product gives clients the option to send money across international borders. Another product from Ripple is the xRapid that uses XRP model principles in order to allow clients to have money exchanged across borders on a global scale.
For many, many months Ripple lamented to the media how not one institution from financial institutions through to Cryptocurrency exchanges or general businesses wanted to make use of XRP. They were sprouting out this issue to such an extent that many noteworthy publications started to talk about it, including publications such as Bloomberg. After all of these publications regarding the XRP technology, two major financial institutions decided to launch their own test pilot XRP initiatives.
However, even while the XRP initiatives gained credibility within the financial industry it soon became clear that there were still numerous detractors who would not or could not see the value of XRP within the world today. Yet, it has been proven that the use of XRP has been shown to significantly lower the cost of transactions by 40 to 70% and the technology behind xRapid has helped to lower the speed of financial exchanges by a minimum of two minutes.
The vast majority of the power of xRapid has been propelled through the use of blockchain technology. Now you might be wondering why anyone would be worried about a powerful technology such as this coming on to the market and being officially recognized as a financial security.
The Impending Source Of Danger
Well, the chair of the U.S. Securities Exchanges and Commission has been rather upfront about his dislike for the rise in Cryptocurrencies that are seemingly happy to pose as financial products such as securities. There is currently no clear direction to show whether there will be a new set of legislation drawn up to govern the new wave of emerging financial products leading the way, post the dawn of Cryptocurrencies. One thing is for sure; XPR and Ripple will be leading the way.