South Korea Financial Services Commission released a statement Thursday that listed all the steps it plans to take in order to put a break on the Bitcoin mania. In order to control the speculation in the popular cryptocurrency, the commission plans to prohibit cryptocurrency exchanges from opening new trading accounts. To put a curb on anonymous trading, it has ordered that users must now use their real names. (Source: Bitcoin briefly falls 11% after South Korea moves to ban new cryptocurrency trading accounts, CNBC, December 29, 2017)
Earlier, the authorities had also prohibited minors and non-residents from opening accounts and introducing taxes on cryptocurrency transactions, as the country comes to grips with investors’ irrational exuberance in Bitcoin. South Korea is the world’s third largest market in Bitcoin trading, after Japan and the U.S., with about 2 million digital currency investors by one estimate. The country also has one of the world’s biggest cryptocurrency exchanges – Bithumb. (Source: In a country known for its “bitcoin zombies”, one-third of workers are crypto investors, Quartz, December 28, 2017)
As South Korea joins a number of other countries that have started imposing curbs on Bitcoin trading, options like Ripple XRP appear to be clear winners.
The best way to understand this is to know that Ripple is not a currency. It is a company running the world’s only blockchain solution that can be used by enterprises for global payments. And XRP is the digital asset owned by Ripple, that is used for these payments. The company provides financial settlement solutions globally, that reduce the total cost of settlement by enabling banks to transact directly and instantly, while ensuring certainty. This is what sets Ripple apart from other players in the cryptocurrency space.
It is not hard to understand why the interest is rising in Ripple’s digital asset. XRP promises to be the fastest and most scalable digital asset that enables real-time payments anywhere in the world.
This is the reason why big banks and other financial players are flocking to the Ripple platform. Ripple connects banks, payment providers, digital asset exchanges and corporates to provide one frictionless experience to send money globally.
It is built on the most advanced blockchain technology that is secure and interoperates different networks. The company’s global network is growing fast with more than 90 customers.
Why Ripple XRP stands to gain further?
Ripple’s technology has attracted the attention of major banks across the globe as the company estimates that a bank can reduce the cost of processing remittances by 33% using its technology and by 60% if coupled with XRP. This is a strong factor in favour of the rise in Ripple XRP price.
Huge cost saving is quite an attractive proposition. Moreover, the fact that the authorities would be more comfortable with the likes of Ripple XRP rather than a digital currency like Bitcoin which aims to disrupt the existing financial infrastructure; is something which would make XRP more attractive to investors.
With more and more people calling Bitcoin a ‘ponzi scheme’, only time can tell what direction Bitcoin price moves in future. However digital token like XRP shall continue to ride higher as Ripple emerges as one of the most bankable technologies.
As the world of digital currencies gets more competitive day by day, and attracts the attention of more regulators, promising technologies like that of Ripple, shall gain the most. This global settlement network shall become faster and more reliable in the coming years, pushing XRP price higher.