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XRP vs Stellar (XLM): Which is Better for Cross-Border Payments?

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Both XRP and Stellar Lumens (XLM) are distributed ledger technology (DLT)-based platforms that aim to provide cross-border payments solutions between large banks and financial firms. However, Stellar’s products have also been developed for the individual consumer.

Notably, the Stellar payment network is a fork of the Ripple protocol and was founded by Jed McCaleb in 2014. McCaleb is also the co-founder of the Ripple protocol. When the Stellar project was proposed, a non-profit Development Foundation was launched as well – in order to support the ongoing development of the Stellar platform.

Stellar Backed By Stripe

One key difference between XRP and Stellar is that the latter was created by a non-profit organization. Due partly to the lower overhead costs of operating as a non-profit entity, the transaction fees on Stellar’s network are quite low. Early stage investors in the Stellar project include San Francisco-based Stripe, an internet-based payment processing service.

Similar to how the XRP cryptocurrency (developed by Ripple Labs) is used to facilitate transfers between two parties who may use different fiat currencies, the Stellar network also allows users to send and receive payments to/from bank accounts that support different currencies – without having to pay high currency conversion fees.

Transactions Only Cost Fractions Of A Cent

For example, the Stellar network can be used to send a payment in British pounds (GBP) to an account that accepts USD. The sender of the payment on the platform only has to pay a 0.00001 XLM network usage fee – which is only a fraction of a cent.

San Francisco-based Ripple Labs has also developed products which are quite similar to those offered by Stellar. XRP is a cryptocurrency that was developed by Ripple Labs and its transactions are conducted on the XRP ledger, at incredibly small costs. In order to transact on the XRP ledger, however, an address must hold at least 20 XRP.

As explained on Ripple’s official website, users must hold a minimum of 20 XRP so that “the shared [XRP] global ledger [does not] grow excessively large as [a] result of spam or malicious usage.”

As most XRP community members would know, not all of Ripple’s products use XRP as the base currency. xCurrent, which does not use the token, is an enterprise-level software product that utilizes the Interledger Protocol (ILP)  to “instantly” process international payments – as it allows for “inter-operability” between virtual and fiat currencies.

The Interledger Protocol was created by Ripple Labs, but its ongoing management and development is now handled by the World Wide Web Consortium (W3C) group. The W3C is an international body that creates open standards to support further growth of the internet.

MoneyGram Tests xRapid, xCurrent Supports Real-Time Messaging

Notably, xCurrent supports real-time messaging between banks (similar to SWIFT) – which is useful because static messages may have typos or might not include important information. This often leads to transactions being delayed.

Another popular product developed by Ripple Labs, xRapid, was also launched recently. If XRP is used to send payments using xCurrent, then Ripple refers to these types of transactions as xRapid. Prior to going live (production), xRapid was tested by leading money transfer services such as Western Union and MoneyGram.

One of the main benefits of using xRapid, according to Ripple, is that it provides liquidity through XRP – which allows money to be transferred cheaply and quickly.

Public Vs Private DLT Networks

Although Ripple, the company, claims to have partnered with around 150 different financial institutions who are either currently testing its products or are even using them in a production environment, the American fintech’s critics say that transactions on RippleNet are not transparent. That’s because it’s a private DLT-based payment network.

However, digital currency transactions on the Stellar network can be verified and seen by anyone – which is something that generally holds true for most public blockchains. Another thing which Stellar’s community focuses more on, compared to Ripple, is serving the underbanked – meaning helping to provide financial services to people who do not have access to modern banking services.

Legal Disputes

There have been a number of legal disputes between members and founders of Stellar and those working on Ripple Labs’ initiatives. One of the most notable disputes between the two involved digital asset exchange Bitstamp. There was about $1 million in cryptocurrency that was held on Bitstamp – which had been claimed by both the Stellar Development Foundation and Ripple Labs.

Bitstamp had asked the courts for permission to transfer the disputed amount to Stellar’s foundation, as it had claimed that it was unable to determine whether the funds belonged to McCaleb’s cousin, Jacob Stephenson, or if Ripple Labs was the actual owner of the funds. Stephenson, the defendant, had reporteldy sold the XRP tokens to Ripple through Bitstamp.

According to Ripple, this transaction was in violation of certain terms and conditions that McCaleb had agreed to as a former board member at Ripple Labs. As CryptoGlobe reported in late September, McCaleb had been accused by Ripple’s board members of selling more XRP than he was allowed to (during a certain time frame)- as per terms stated in the contract.  Although it is unclear exactly how many XRP tokens McCaleb holds, it is well over 5 billion XRP.

Source: CryptoGlobe

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Ripple executive elected to United States Faster Payment Council’s Board of Directors

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Pat Thelen, Ripple’s VP of Strategic Accounts, has been recently appointed as one of U.S Faster Payment Council’s (FPC) directors. He was also among the first elected board members of the Council. The list of the selected members was out on Monday and Thelen was chosen from a list of people in the larger technological sector industry. Thelen will be serving a one year term.

The appointment of the directors, including Thelen, was met with a lot of positive reaction online. This enthusiasm was shared by the Council itself, whose Executive Director and interim board Chairman, Kevin Christensen, said“The new board represents the industry’s inclusiveness which is an integral part of the organization.”

FPC is leading the way for presenting avenues for faster payment methods. Hence, Thelen and other representatives on the Council are expected to take greater initiative in fulfilling the Council’s objectives. Ripple was created for a similar goal, with XRP born to do transactions at a faster speed than what Bitcoin, or any other present-day payment settlement system, is doing.

With Pat Thelen becoming a part of the FPC, many doors and opportunities are now open to Ripple, XRP and companies in the field of making global payment settlement more secure, quicker and more accessible for a diverse set of consumers. With CEO Brad Garlinghouse claiming that he did not expect banks and governments to be “obliterated by new technologies,” Ripple’s work within the FPC may accelerate its goal to reduce the friction in global commerce.

With Ripple now as a part of FPC, it has also opened doors for other cryptocurrencies as well. The FPC is a newly-formed organization, one that aims to provide a platform for Americans to do transactions in a safe, instant and cost-effective manner.

Source/ambcrypto

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How Banks Are Pushing Ripple Adoption More Than Ever Before

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The founder of Gokhshtein Magazine, David Gokhshtein is a very big XRP supporter and thinks that Ripple is placing themselves in the perfect position to infiltrate the international financial system.

Banks across the world are toying with the idea of creating their own cryptocurrencies. These bank-backed stablecoins would act as intermediaries between fiat and crypto for institutions and some individuals.

According to Gokhshtein, as these financial giants wade into the crypto waters, they’re going to find to be easier, cost-effective and more efficient to use the Ripple-built infrastructure.

Gokhshtein has advised his followers that banks and other big financial institutions will not allow themselves to become obsolete. These more than powerful firms will get used to the current financial season, so to speak and maybe crypto will become a hot topic soon.

“Bottom line: banks aren’t going to fade out. they will always find a way to adapt to the current environment. That being said; @ripple has the perfect system in place for them and that’s why most of them are teaming with them.”

In fact, Ripple is already helping people and companies to send money across the globe in a more effective way.

Brad Garlinghouse and the rest of the team at Ripple are excited about Ripple has been experiencing. The Swiss National Bank Conference Garlinghouse explained the impact Ripple’s xRapid can bring to people and businesses across the world.

“People are getting liquidity th

at exists in the marketplace in local regions between XRP and the Philippine peso, XRP and the Argentine peso, XRP and the Brazilian real. And it’s tapping into that liquidity that exists in the marketplace.”

With more institutions a starting to love Ripple for similar reasons to Gokhshtein’s tweets, adoption is being pushed in a way it has never been before.

-News Source

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Ripple (XRP) Price Following Uptrend: Can Bulls Take Over?

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  • Ripple price found a strong support near the $0.3800 level and recently moved higher against the US dollar.
  • The price is now placed above the $0.3950 and $0.4000 levels and it could continue higher.
  • Yesterday’s highlighted major bullish trend line is intact with support near $0.3950 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair remains well supported and it could continue to rise above the $0.4100 resistance area.

Ripple price is trading in a bullish zone against the US Dollar, while consolidating vs bitcoin. XRP is likely to climb above $0.4200 as long as it is trading above the $0.3920 level.

Ripple Price Analysis

After a sharp decline, ripple price found support near the $0.3800 area against the US Dollar. The XRP/USD pair traded as low as $0.3802 and recently started an upward move. There was a break above the $0.3920 resistance and the 100 hourly simple moving average. The price slowly moved above the $0.3950 level and the 23.6% Fib retracement level of the downward move from the $0.4300 swing high to $0.3802 low. Moreover, there was a break above the $0.4000 level.

Finally, the price spiked above the $0.4050 level and the 50% Fib retracement level of the downward move from the $0.4300 swing high to $0.3802 low. The price tested the $0.4110 level and the 61.8% Fib retracement level of the downward move from the $0.4300 swing high to $0.3802 low. If there is an upside break above the $0.4110 and $0.4120 levels, there could be more upsides in the near term. The next key resistance is near the $0.4200 and $0.4220 levels.

On the downside, there is a strong support forming near the $0.4000 and $0.3980 levels. More importantly, yesterday’s highlighted major bullish trend line is intact with support near $0.3950 on the hourly chart of the XRP/USD pair. As long as the pair is above the trend line, it could climb above the $0.4050 and $0.4110 resistance levels. Conversely, if there is a downside break below the trend line, the price could extend losses below $0.3920.

Ripple Price Analysis XRP Chart

Looking at the chart, ripple price is trading nicely above the $0.3950 support area. Only a close below the 100 hourly SMA is likely to open the gates for more downsides in the near term. Otherwise, the price is likely to trade towards $0.4200 and $0.4220 in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly gaining momentum in the bullish zone, with positive signs.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level, with neutral signals.

Major Support Levels – $0.3950, $0.3920 and $0.3800.

Major Resistance Levels – $0.4050, $0.4120 and $0.4200.

-News Source

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