XRP (XRP) Security Status Yet Not Confirmed, Ripple Adopted A Wrong Regulatory Approach
The United States Securities and Exchanges Commissions (SEC) has kept the XRP token under observation and the status is yet not confirmed. Though it has been well known to people that for Bitcoin (BTC) and Ethereum (ETH) it is very safe to explore and trade using those platforms. After all that information and awareness, the status of the third largest cryptocurrency (XRP) is yet not confirmed and there is a minor confusion for its approval which will be in decided soon.
Billionaire Steve Cohen Not interested In XRP As Per Its Status Not Confirmed
The clarity of the XRP token is not seen as we can see in the case of Steve Cohen the billionaire who bought the cryptocurrency through head funds but not shown any interests in XRP. By his actions that were clear for sure that XRP tokens were ignored just because of its status not been confirmed.
On the action of Steve, Arianna Simpson the Managing Director at the fund expressed his opinion about the XRP status stating that he has a doubt about the level of centralization of the company and also some regulatory concerns as of how it is working at the back end. Its security has a lot of questions to ask.
XRP Is Not A Pure Cryptocurrency According To Anatoly Castella
Many of the industry experts shown their concerns for XRP and among them, the latest one has come up by the CEO of Elpis Investments Mr. Anatoly Castella. His opinion about the XRP Tokens was that it falls under a category called “Digital Fiat”, and it is not the purest kind of cryptocurrency.
Further, he said that the digital Fiat should not be included as a cryptocurrency. Also, he explained about Ripple that it's working on the platform that has the best elements of fiat money and blockchain cryptocurrency.
What Is Fiat Currency
Fiat currency is the money or coins that have a value of its own and it cannot be converted into gold and silver and can be used as a tender by the order of government.
Ripple’s Wrong Regulatory Approach
Castella further stated that Ripple is taking a wrong approach in its regulatory decision as it is confusing the public for the identification of the real cryptocurrencies like Bitcoin. He also mentioned that Bitcoin will not be affected by this approach but Ripple is practicing a wrong regulatory approach as being a startup.
On the other side, it is a brave step taken by Ripple as the company has adopted a strong stance in its regulations. This has been proved right by a statement of Ripple’s own staff Asheesh Birla stated that to maintain records and accounts for financial institutions is a very difficult job. If you want to launch a product for these financial institutions, then you must launch a product that follows the aligned with local regulation and compliance information.
Views of the Experts
According to the experts, they believe that Ripple is making its transactions through a centralized blockchain which makes it faster and reliable. XRP when gets the security approval then there would be a market dip and it will just become a regular asset.