- By Pierre-Alexandre
April 3rd, 2019
The CTO of Ripple insists that XRP is an independent cryptocurrency and they do not control it. Cryptocurrency exchange Coinbase has decided to make use of XRP and USDC to enable its user's to transfer funds around the globe for free.
Ripple does not own XRP
The biggest question around XRP, which is currently the third largest cryptocurrency by market cap, is the level of its decentralization. A large chunk of XRP’s market supply is owned by Ripple, a San Francisco based company that makes use of the cryptocurrency to power its cross-border payment systems. This has led to comments by crypto enthusiasts that Ripple controls XRP.
Ripple has denied those claims on several occasions, and the latest member of the company to do so is David Schwartz, the CTO of the company. While taking part in a Quora session, the Ripple exec noted that the company does not control XRP, insisting that the cryptocurrency is decentralized.
He answered a question regarding whether XRP is owned by Ripple, stating that the XRP ledger is an open source technology that has a vibrant community of developers and participants. The exec added that if Ripple should seize to exist, XRP and its ledger will continue to operate. Ripple has grown to become one of the most successful crypto ventures as it offers solutions to financial institutions all over the world.
Coinbase cross-border payment platform to use XRP
Cryptocurrency exchange, Coinbase announced earlier this week that it would be making use of XRP and USDC for its cross-border cryptocurrency payment platform. Coinbase on its blog stated that its users in some countries could send money to other people using XRP and USDC.
The exchange noted that the transaction is free and happens in real time, with the recipient able to convert the funds to local currency. Coinbase stated that people could send and receive funds virtually almost instantly by sending XRP and USDC. “There are zero fees for sending to other Coinbase users and a nominal on-chain network fee for sending outside of Coinbase,” the blog post added.
This latest development has caused shocks in the crypto space, with some confusion as to why Coinbase chose to use XRP instead of Bitcoin. Cryptocurrencies are now created with specific purposes, and the primary aim of XRP now is to serve as cross-border crypto. XRP is used by xRapid and other remittance tools designed by Ripple, allowing users to send funds instantaneously all over the globe with little transaction fees.
XRP has started to gain massive adoption via remittance as more banks and financial institutions sign up to make use of xRapid for cross-border payments.