Ripple XRP and Stellar XLM are best known for their remittance payment solutions. Both cryptocurrencies have been designed to change the way international, cross-border transactions are made. Current FIAT services are slow and expensive, therefore it’s hardly a surprise that blockchain technology is able to make remittance payments more efficient.
For those that aren’t sure how all of this works, let’s explore exactly what remittance payments mean, according to Investopedia:
“A remittance is the funds an expatriate sends to his or her country of origin via wire, mail, or online transfer. These peer-to-peer transfers of funds across borders are economically significant for many of the countries that receive them. Remittances have played an increasingly large role in the economies of small and developing countries.”
“Remittance payments also comprise a substantial amount of the flow of capital between countries. In 2014, $583 billion in USD was transferred between countries – $436 billion of which was received by developing countries. The countries receiving the largest share of remittances are the BRIC nations China and India. Those countries received $69.97 and $59.49 billion dollars in 2013 by 2015 estimates.”
Venezuela is a bit of a political hotspot at the moment and is also one of cryptocurrencies ‘most mentioned’ countries. During the recent crash of local currency, Venezuela has seen a huge surge in the adoption of DASH, historically as well, Venezuela have also been involved in the production of an ‘oil backed’ cryptocurrency called the Petro. The recent news is not crypto-specific (by this, we mean that these regulations are not focused on just one cryptocurrency) so to speak, but it will have a big impact on how remittance payments can be made with cryptocurrency in the country. Given that XRP and XLM is the most popular solutions for remittance, we can only expect that the pair will remain the ‘payer’s choice’ when it comes to sending money home.
According to Bitcoin.com:
“The Venezuelan government has begun regulating cryptocurrency remittances. The regulator has set a monthly limit and will be collecting commissions of up to 15 percent of the transaction amount. Additionally, new details of its comprehensive registry of crypto service providers have been announced.”
This announcement came last week via The National Superintendency of Crypto Assets and Related Activities (Sunacrip) the Venezuelan cryptocurrency regulator. Part of the new ‘decree’ outlined by Sunacrip, covers:
“The requirements and procedures for the sending and receiving of remittances in crypto assets to natural persons in the territory of the Bolivarian Republic of Venezuela.”
The decree goes on to state that anyone making remittance payments with cryptocurrency into Venezuela will be liable to pay a heft taxation fee of 15%:
“The sender of the remittances referred to in this ruling is obliged to pay a financial commission in favor of Sunacrip up to a maximum amount of 15% calculated on the total of the remittance.”
Ripple Says Sales of XRP Cryptocurrency Grew 31% in Q1
Blockchain payments startup Ripple has reported a 31 percent increase in sales of XRP over the first three months of the year.
The San Francisco-based firm sold a total of $169.42 million in XRP in Q1, compared with $129.03 million in the previous quarter, it announced Wednesday.
Ripple further said that direct institutional sales of XRP totaled $61.93 million in Q1 – 54 percent more than the previous quarter. Programmatic sales of the cryptocurrency, meanwhile, grew from $88.88 million to $107.49 million, an increase of 21 percent.
It’s not all good news, though. The total volume of XRP traded globally decreased by about 2 percent to reach $53.85 billion in Q1 as compared to $54.82 billion in Q4 of last year.
Further, looking at the year-on-year figures, XRP sales have not shown significant growth. In Q1 of 2018, the firm sold $167.7 million-worth of XRP, which is just 1.03 percent less than Q1 of this year.
Ripple said that it released 3 billion XRPs out of escrow accounts in Q1 2019 and additional 2.30 billion XRPs were returned and put into new escrow contracts. “The remaining 700 million XRP not returned to escrow are being used in a variety of ways to help support the XRP ecosystem,” the firm explained.
XRP, the third largest cryptocurrency by market capitalization, is now listed on around 120 exchanges, as 19 new exchanges moved to list the cryptocurrency in Q1 2019, according to Ripple’s data.
January to March 2019 was also the second-lowest volatility quarter since Q4 2013 for XRP, Ripple added, as “rolling volatility of 30-day returns steadily declined throughout the quarter.”
Ripple’s Q1 sales account for 0.32 percent of XRP’s global volume, reveals report
Ripple, a leading U.S based Fintech company providing payment settlement solutions, released its Q1 report for the year 2019. The report provides insight into the amount of XRP taken out from the escrow account, the firm’s financial progress, and an overall update on the XRP market.
The report stated,“Ripple’s Q1 sales accounted for 0.32 percent of global XRP volume. Three billion XRP were released out of cryptographic escrow, 2.30 billion returned to escrow. XRP is now listed on approximately 120 exchanges worldwide”
The report also stated that Ripple withdrew 1 billion XRP each from its escrow account over the last three months, a total of 3 billion XRP. Out of this, over 700 million XRP was used for the development of the ecosystem, while the remaining 2.3 billion XRP was deposited back into its escrow account.
Notably, the report stated that the firm sold $169.42 million worth of XRP in the first quarter, an increase to 0.32 percent from 0.25% in Q4 2018, in terms of sales in global XRP volume. On one hand, institutional direct sales also saw a significant increase from 2018 Q4, growing from $40.15 million to $61.93 million. On the other hand, programmatic sales also saw a massive hike from 2018 Q4, rising from $88.88 million to $107.49 million.
Cryptopolis, a Twitter user, commented,
Tony Valentino, another Twitter user, said,“Market manipulation at its finest.”
Ripple (XRP/USD) forecast and analysis on April 25, 2019
Cryptocurrency Ripple (XRP/USD) is trading at 0.3197. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bearish trend on Ripple. At the moment, cryptocurrency quotes are moving near the lower border of the Bollinger Bands indicator bands.
Ripple (XRP/USD) forecast and analysis on April 25, 2019
As part of the forecast Ripple course is expected to test the level of 0.3270. Where should we expect an attempt to continue the fall of XRP/USD and the further development of the downward trend. The purpose of this movement is the area near the level of 0.3020. The conservative Ripple sales area is located near the upper border of the Bollinger Bands indicator at 0.3290.
Cancellation of the option to continue the decline in the Ripple rate will be a breakdown of the upper border of the Bollinger Bands indicator bands. As well as the moving average with a period of 55 and the closing of quotations of the pair above the 0.3320 area. This will indicate a change in the current trend in favor of the bullish for XRP/USD. In case of a breakdown of the lower border of the Bollinger Bands indicator bands, one should expect an acceleration of the fall of the cryptocurrency.
Ripple (XRP/USD) forecast and analysis on April 25, 2019 implies a test level of 0.3270. Further, it is expected to continue falling to the area below the level of 0.3020. The conservative area for selling Ripple is located area of 0.3290. Canceling the option of falling cryptocurrency will be a breakdown of the level of 0.3320. In this case, we should expect continued growth.