- Ripple partnered with MoneyGram to process cross border transactions
- Investors are wondering whether this partnership is going to have a positive effect on XRP
Ripple has recently closed a deal with MoneyGram in which the company is expected to be using the xRapid product to make cross-border transactions through XRP. At the same time, the settlement company is expected to buy $30 million worth of shares for a price of $4.1, that is higher than MoneyGram’s market value. David Schwartz, Ripple’s CTO, wrote on Twitter how the price of digital assets could be affected in the future.
David Schwartz Explains How XRP Could Be Affected
On Twitter, a user called @KingRum4 asked Mr. Schwartz to explain why xRapid is live but the value of XRP is still the same. He has also asked whether the price of XRP would go up if MoneyGram goes live using Ripple’s services.
Schwartz answered him saying that he does not pretend to understand how different things affect the prices of digital assets. He just “guess” that price is based on the assessment of long term utility. He has also said that the market does not think these kinds of things affect that very much.
I don't pretend to understand what things affect the prices of digital assets or how. I don't think anybody really does. My guess is that price is mostly based on assessment of long term utility and the market doesn't think these kinds of things affect that very much.
— David Schwartz (@JoelKatz) June 19, 2019
Although XRP could be adopted by MoneyGram to make transfers, it is not clear how this would affect XRP’s price. In terms of supply and demand, MoneyGram is expected to purchase XRP in a crypto exchange in a specific country, send a transfer to another jurisdiction and sell the XRP.
If the remittance market tends to have a country that sends more funds than those that it receives, the value of XRP is expected to be larger in this market. If a country receives more funds than what it sends, the price of XRP is expected to be lower.
However, with increased activity in the market, the Ripple Ledger and XRP are going to gather the attention of investors. If there is an asset that proves to be useful for institutions and companies around the world, investors would be interested in owning an asset that is valuable for firms.
Ripple is also working on agreements and partnerships with other banks. For example, Ripple signed a partnership with Euro Exim Bank that resulted in the use of xRapid and xCurrent. Nevertheless, the Head of Compliance and Operations of Euro Exim Bank, Graham Bright, hinted that the cooperation between the companies does not mean that they are going to be using the XRP digital asset.
Currently, at the time of writing this article, XRP is being traded around $0.4574 and it has a market capitalization of $19.44 billion. In the last 24 hours, XRP expanded 3.05 percent, according to CoinMarketCap.
Live Ripple (XRP) Price:
1 XRP/USD =$0.2464 change ~ 2.46%