From Fortune and Failures – AMEX Adoption and a Fourth Lawsuit – What's the Future of XRP?
The Vice-President of American Express, Colin O'Flaherty, officially confirmed this week that the company uses xCurrent—Ripple Inc’s financial solution based on blockchain technology.
During the Money 20/20 event, which was hosted in Amsterdam between the 4th and 6th of June. O'Flaherty, who also serves as the General Manager of Global Commercial Service UK & Russia, spoke on the last day of the conference:
“Ripple offers instantaneous, point-to-point conversations between the sender and receiver of funds. And that provides a real opportunity to alleviate most of the issues our customers are facing.”
The CEO of Ripple, Brad Garlinghouse, was also one of the panelists at the same event that O'Flaherty spoke at, Garlinghouse spoke about Bitcoin (BTC), the current landscape within the cryptocurrency market, and Ripple. Along with these topics, Garlinghouse highlighted the tremendous progress that blockchain is made in the form of the various startups that are being formed.
One of the other optimistic signs that Garlinghouse identified was the increasing number of banks that remained open-minded to cryptocurrency, especially those which had continually been accepting Ripple’s technology.
On November 2017, both Mastercard, the credit card company, along with the multinational bank, Santander, entered into an agreement with Ripple, involving the use of its technology for facilitating and speeding up the process of conducting cross-border payments, especially between the United States and the United Kingdom.
After the agreement was finalized, any payments made using the FX International Payments Platform (FXIP) of American Express would be routed with the use of RippleNet, Ripple's enterprise blockchain network.
Some of the most notable products coming from Ripple consist of xCurrent and xRapid. xCurrent had been integrated with the existing infrastructure of American Express to facilitate customer-SME payments. Ripple was in the news for it.
But while there's a great deal of fortune that Ripple's been exposed to over the years, especially with striking deals with Mastercard and Santander, it's faced its fair share of misfortunes too.
One of the more recent examples of this being what is now shaping up to be its fourth consecutive lawsuit within the business' lifespan. Rosen Law Firm is investigating whether Ripple Labs, Inc. had violated any federal securities laws or not. According to Rosen Law Firm, which is based in New York, they intend to investigate the organization as it:
“Represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation” and that because of this, they are planning to go for a “class action lawsuit to recover losses suffered by purchasers of Ripple’s XRP tokens.”
While the cryptocurrency industry has made some significant changes and progress over the years, one thing that remains miles behind is the ability of governments and their regulatory authorities to provide a clear legal definition for what cryptocurrencies are.
While this remains an issue, definitions are steadily catching up, with rules changing and governments liberalizing their approach towards them. One thing that remains a fear, in the minds of cryptocurrency investors, is that regulatory bodies would go ahead and ban them outright.
The reality is that these agencies, like the SEC for example, want to take their time making sure that their decision is one that conforms to the definitions and characteristics of cryptocurrencies. If anything, most regulators simply regulated the cryptocurrencies instead of banning activities related to cryptocurrencies completely.
Currently, the Securities and Exchange Commission regards the likes of Ethereum and Bitcoin as commodities, which is a landmark achievement in the cryptocurrency world, and considering that this means that the duo are exempt from many of the laws which restrict areas such as Forex and the stock exchange, this definition becomes all the more precious.
William Hinman, the Director of SEC’s Division of Corporation Finance said:
“Putting aside the fundraising that accompanies the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network, and its decentralized structure, current offers, and sales of Ether are not securities and transactions. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value”.
Ripple hasn't been able to escape the bearish downturn that cryptocurrencies are suffering, as it slips by nearly 18%. Having a lawsuit on the horizon is certain to continue this downwards slide.