International Monetary Fund (IMF) Could Aid in Bitcoin and Ripple Adoption with Financial Institutions
The International Monetary Fund May Be Helping Financial Institutions Adopting XRP
It will be very important to follow whether XRP is going to be acknowledged as a security or not. The cryptocurrency world is waiting since a very long time about this decision. But there is a very interesting situation going on here. Ripple is trying to make the current financial system more fair and efficient.
It is important to mark that is not difficult for regulatory agencies to determine whether Ripple is a security or not. The real question is whether Ripple’s technology could be used for securities, commodities, stocks and bonds. In sum, is Ripple able to transform transactions around the world?
At the moment there are over $294 trillion dollars in financial assets. This also involves money that goes on a day-to-day basis. These transactions can be processed with Ripple’s technology.
Is The International Monetary Fund Bullish On Ripple?
The International Monetary Fund (IMF) has shown its support for virtual currencies in different occasions. And indeed, Christine Lagarde, CEO of the IMF, said that virtual currencies do not carry substantial threats to fiat currencies.
Lagarde commented on the matter:
“Why would citizens hold onto virtual currencies rather than those physical dollars, physical euros or physical sterling’s. Because it may one day be easier and safer than obtaining paper bills, especially in remote regions and because virtual currencies could actually become more stable.”
Additionally, the IMF leaders explained that citizens may decide one day to use cryptocurrencies due to the fact that they potentially offer the same cost and convenience as there could be no cash, no settlement risks, no clearing delays, and many other benefits.
In order to increase the Fund’s HIgh-Level Advisory Group on Finance and Technology, there were 19 different members formed for the initiative including Ripple’s Ryan Zagone and Chris Larsen. The group will be advising to help the IMF personnel to understand more different FinTech issues.
“It will work closely with the IMF’s Interdepartmental Working Group on Finance and Technology, which was established in 2016, to study the economic and regulatory implications of developments in the area of finance and technology. Such a system (Ripple) would stand a good change of disrupting entrenched players (e.g., Swift), according to the IMF.”
The IMF had several meetings about Blockchain technology that were proposed by the IMF. Most of them had the presence of Ripple’s Ryan Zagone. This shows that he is representing Ripple a the IMF and they are working together.
This information is very important. The International Monetary Fund is working with Ripple and supporting its development. And indeed, Ripple was able to build a strong presence in the market with different technology communities and financial institutions from everywhere around the world.
Ripple offers a fast and inexpensive technology for banks and other institutions to send payments and settle them on Ripple’s network in just some seconds. Using Ethereum and Bitcoin takes 2 minutes to 1 hour, and traditional system between 3 to 5 days.
If the IMF is supporting and working side by side with Ripple, this virtual currency may have a very promising future ahead.
XRP is the third most important virtual currency in the market. Each token can be bought for $0.41 dollars and has a market capitalization of $16 billion dollars.