Ripple’s Big Plans for 2020: XRP as a Medium of Exchange & Not as a Speculative Investment
- XRP price drops on Sept. 2017 level on Dec. 27th But seeing much development especially in Japan
- Big banking executives went from skepticism to advocacy about digital assets
- 2020 Ripple will be focused on new utility and use cases for XRP & new products to come
2019 is just about to come to an end. The year saw cryptocurrencies experiencing tremendous growth and first-ever working President, Donald Trump, tweeting about Bitcoin and cryptocurrencies. As Ripple CEO Brad Garlinghouse said, that moment couldn’t have been predicted.
For the third-largest cryptocurrency, price wise it has been a bad year. XRP dropped to a new low to $0.186 on Dec. 27, a level last seen in late Sept. 2017 during the bull run.
Down 95% from the all-time high, XRP is currently trading at $0.194, as per Coincodex.
2019 was a Big Year
XRP price might only be going down but the cryptocurrency is seeing much development especially in Japan.
“In Japan, almost every bank has started to work with XRP, what you may know as Ripple,” said David Jevans, CEO of CipherTrace.
Also, as Garlinghouse shared in the special holiday episode of The Ripple Drop, Ripple bagged MoneyGram in 2019 that uses the digital asset XRP to move funds. The transition from the skepticism towards digital currencies among MoneyGram executives to advocacy has been an ‘aha’ moment for Garlinghouse.
2019 saw the number of companies using XRP growing to 17 including TransferGo, Interbank, Euro Exim Bank, MoneyGram, Bitso, Bittrex, Bitstamp, FlashFX, Viamericas, Bitrue, Mercury FX, Coins.ph, goLance, Nium (formerly InstaReM), SBI Virtual Currencies, Catalyst, IDT, SendFriend, and Cuallix.
What was surprising in 2019 was how quickly people went from not caring about privacy to very concerned about how much Facebook and Google own their private data, shared Asheesh Birla, SVP of Product at Ripple.
Privacy he said became a mainstream topic of discussion in 2019 when it could have taken a lot longer.
XRP as a Medium of Exchange
Cryptocurrencies have been in existence for a few years now but they are still a speculative asset. Especially for XRP, it isn’t to fund the company either as Ripple CTO David Schwartz clarifies.
“Nobody buys XRP to give Ripple money to do things. We were vc/angel funded and were going to build regardless. We started selling XRP only after there was a market price and for negligible amounts compared to our other funding.”
However, now the company is focused on becoming a medium of exchange, “Our vision is to use digital currencies as a medium of exchange, not as a speculative investment,” said Ripple's CEO in Brazil, Luiz Antonio Sacco.
The company is working towards expanding partnerships with Brazilian banks by 2020 as demand for cheap and instant solutions in the international remittance market grows rapidly.
In October, Ripple invested in Bitso to expand operations in Latin America with a focus on Brazil.
Now Big Things Coming for 2020
Going into 2020, the Ripple team is expecting big things.
Garlinghouse sees continued consolidation in 2020 as there is no need for 3,000 cryptocurrencies and 99% will eventually go away.
Breanne Madigan, head of the Global Institutional Markets at Ripple meanwhile is excited to build on On-Demand Liquidity (ODL) that leverages XRP.
“We here at Ripple are focused on new utility and use cases for XRP through our Xpring initiative and we are excited about new products to come in 2020,” projected Madigan.
Another thing that Ripple will focus on next year is fake volume as Madigan said, “We think about a lot in the Ripple, and we have made some noise about it is the persistence of fake volumes in the industry.”
As for, in the next decade, Ethan Beard, SVP of Xpring sees cryptocurrencies replacing the underpinnings of the infrastructure of the finance industry.