The cryptocurrency world is finally starting to look beyond Bitcoin. This is definitely the case in Japan, where a consortium of domestic banks have announced a new mobile app that will allow customers to make payments using the cryptocurrency ripple. In this article, we’ll take a look at what this move could mean for the value of ripple and the acceptance of cryptocurrencies as a means of exchange.
What does major bank backing mean for crypto currency value?
Put simply, the backing of major financial institutions will increase demand for any cryptocurrency which should, in theory, increase the value of that currency since the overall supply is limited. While some cryptocurrency pursuits prefer to stay away from currencies that enjoy the backing of major financial institutions, as they believe this undermines the whole point of the cryptocurrency movement, it’s probably a smart move from an investment point of view.
What does this mean for the mainstream?
It looks increasingly likely that cryptocurrencies are only going to find acceptance in the mainstream from apps and services like this one. In many cases, the users may not be aware that cryptocurrencies or the blockchain are involved in the transaction at all. They will simply see a transaction being made quickly and effectively with a very low fee. This type of selling point is essential if cryptocurrencies are to be embraced by technologically savvy consumers. With South Korea apparently out of the running due to their government’s general disdain for crypto technology, Japan may be the economy that is first to embrace and make use of these exciting new developments on a large scale. Keep your eye on Japan in the months and years to come to see how this develops.