Forbes delves into a list of common Ripple and XRP misunderstandings

09 Mar, 2019
by Richard Allen
Forbes delves into a list of common Ripple and XRP misunderstandings

Renowned mainstream financial news outlet Forbes has published a list of common misunderstandings relating to Ripple’s XRP, the third biggest cryptocurrency by market cap.

Among the 14 myths Forbes looks at, the most prominent relates to the belief that XRP isn’t needed for Ripple’s payment protocol. The news outlet describes how Ripple offers two products, xCurrent and xRapid. xCurrent offers real-time settlement of transactions at a speed that rivals major competitor SWIFT.

As Forbes explains, xCurrent doesn’t utilize XRP directly for liquidity, which has led some to misunderstand and claim that XRP is unnecessary and that Ripple might be using XRP to “scam” crypto investors. As the article explains, XRP makes it cheaper and faster to settle payments than fiat/fiat exchange pairs.

xRapid, however, exists to eliminate the inefficiencies inherent in fiat/fiat exchange pairs. It also offers further savings on payments, allowing for even smaller international payments with next to no fees and allows users to send funds into otherwise illiquid or very expensive corridors. XRP also provides access to global and developing markets while eliminating the need to compete with established players from the get-go.

Additionally, Forbes explains that both of Ripple’s products are available to its customers. As its website reads:

“Both access levels have the ability to settle transactions instantly through XRP, a digital asset, used in Ripple’s xRapid product. Eliminate pre-funding in foreign accounts and send payments 24/7 using XRP.”

Forbes also touched on the belief that XRP is too volatile for banks to touch, but as the article points out, fiat is volatile too. Over long periods of time, banks are exposed to exchange rate fluctuations, sometimes so severe that the risk is too great even for banks to enter.

Moreover, banks are not required to hold XRP in order to use xRapid, and that they’re free to use the product without having any XRP reserves.

Read more: Ripple partners with Tipping Point to fight poverty in Bay Area; Will Ripple partner with eToro?

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