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- The XRP token from the San Francisco-based blockchain consortium ripple is considered by many to be the best well-established cryptocurrency for banking institutions.
- Especially when it comes to cross-border omittance services, the token seems to excel.
The XRP token from the San Francisco-based blockchain consortium Ripple is considered by many to be the best well-established cryptocurrency for banking institutions. Especially when it comes to cross-border omittance services, the token seems to excel.
Despite this, banks and many financial institutions all over the world have been sceptical on adopting the token and as a result, it hasn’t performed well over the course of 2020.
By this year, early investors in the asset were expecting to see a massive adoption and as a result, the value of the token would skyrocket but unfortunately, that didn’t come to light.
New institutional investors that are getting further involved in industry seem to be overlooking the token as well and the fact that so many banks are not willing to integrate the asset to the system as a bridging service says a lot.
The chief technical officer of the company, David Schwartz has said that the disappointing adoption rate is due to a number of different obstacles in the way. He highlighted this with the Ripple community indicating a low forecast of performance for the token over the course of next year, as well as this one.
“I think there are a combination of obstacles. Regulatory uncertainty, last-mile problems, fear of reprisals from existing partners.”
On top of this, the chief technical officer went on to say that the best customers for Ripple are still waiting for financial institutions to bring in remittance customers which is also having an impact on the adoption rate.
“Another big thing is the very best customers are ones that are going to use bridge assets to build new products. They are heavily motivated to see projects to completion and will push the benefits all the way down to customers.”
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