Ripple has been taking significant steps towards providing its financial solutions all around the world, with a recent development expanding the firm’s presence in one more country. The National Bank of Egypt has signed an agreement with Ripple to aid in easing the remittance process, according to reports. The National Bank of Egypt has now become the first in the country to use blockchain technology, and in the field of remittance.
This strategic cooperation, with the fifth largest remittance market in the world, might prove significant for Ripple in the Middle East and North Africa. The company’s Managing Director of the Middle East and North Africa, Naveen Gupta, was a part of this agreement and claimed that this is a strong move in line with its strategy to expand in the region. Calling the collaboration “preferred and distinctive,” the team believes that the National Bank of Egypt has reflected the will to embrace a new system.
The Vice-Chairperson of the NBE, Dalia El-Baz, spoke about the benefits the bank will enjoy while being part of the RippleNet. According to El-Baz, under this cooperative agreement, the bank will be able to improve its liquidity management and increase its earnings in foreign currencies. This is crucial as according to a research report, Egypt’s remittance market is expected to reach $20.5 billion in terms of total transaction value by 2023.
According to the report in question, an “increase in banking population coupled with the growth of mobile users will positively impact the market future growth.”
The research report added,
“The international remittance, domestic remittance, and bill payment markets are expected to register a positive CAGR of 2.7%, 5.2%, and 15.4% respectively in terms of transaction value during the forecast period 2019E-2023E.”
The present development comes just a week after the blockchain firm expanded its footprints in Latin America and the Caribbean global payment corridors with a partnership with International Money Express Inc. (Intermex).
Ripple CEO claims XRP’s demand won’t be affected by USD-backed CBDC
With nation-states like Singapore well into the development of its own CBDC and China set to launch its ‘DCEP’ this year, all eyes are on the United States Federal Reserve and the possibility of it launching a U.S. dollar-backed CBDC. In fact, the Head of Blockchain technology at JP Morgan had reportedly said that if the Federal Reserve launched a coin, the firm would drop its JPM Coin. With so many central banks preparing to step into the world of blockchain technology and cryptocurrencies, where does Ripple stand?
In a recent interview, Ripple CEO Brad Garlinghouse spoke about the possibility of a ‘Fed Coin,’ and how it would affect the company. “I don’t think in most of Europe and U.S, they’re going to circumvent the commercial banks,” he said, adding that whether the launch goes through or not, the San Francisco-based blockchain firm’s focus remains on commercial banks and payment providers.
However, Garlinghouse also said that Ripple is open to servicing other types of customers, comparing the firm’s growth to that of Amazon in the early days of the Internet, a time when it just sold books. The CEO of Ripple went on to address the firm’s rate of expansion, commenting,
“We view ourselves as a blockchain infrastructure company. The first vertical we’ve done is cross border payments,” he said. “We want to make sure we’re winning and cross border payments before we do another vertical. But we will certainly do other verticals leveraging these technologies.”
However, contrary to the sentiments shared by JP Morgan’s Head of Blockchain, Garlinghouse doesn’t believe that XRP’s continued existence and use is predicated on whether the Federal Reserve launches ‘Fed Coin.’ According to him, even if the Fed Coin launches, the need for a proper, cross-border settlement dynamic will remain and thus, there will be a need for a neutral, cross-border settlement asset like XRP.
This is an interesting observation to make as off late, many Federal Reserve officials have come out publicly to trash cryptocurrencies, while also teasing the release of this much-anticipated ‘Fed Coin.’ In light of the mistrust of public officials towards cryptocurrencies such as Bitcoin and XRP, many expect the ‘Fed Coin’ to pose a challenge to the same.
Whether or not this will be the case remains to be seen. However, with at least one central bank launching a fiat-backed national stablecoin this year, 2020 might be the year we finally find out.
Is Ripple looking to disrupt the $16 billion Indian remittance market? Here’s Brad Garlinghouse’s take
When we look at a framework, we want regulatory clarity and that’s an important one.”
These were the words of blockchain giant Ripple’s CEO, Brad Garlinghouse, who featured in an interview with CNN’s Julia Chatterley. He went on to say that while any remittance market that has a “lot of US Dollar and Euro” flow continues to be a high priority, the only hurdle in cases like these is the regulatory clarity.
A staunch supporter of regulation in the crypto space himself, Garlinghouse went on to hint that India could be on their expansion list if the lawmakers provide some sort of relief in terms of regulating the market. He said,
“You know, typically you’d say India would be high on our list. [But] India hasn’t yet provided a lot of clarity from a regulatory point of view and so we have not prioritized.”
While there is no outright ban in the country, however, the clampdown by the Reserve Bank of India, imposed nearly two years ago, has attracted negative press for the market.
The lack of regulatory clarity has not deterred the San Francisco-based firm to look forward to the vast remittance market that India has to offer. When asked if the blockchain firm has stepped back till the lawmakers of the country issue its regulatory stance on the market, Garlinghouse asserted,
“I wouldn’t say we stepped back. It means a lot of frequent flyer miles for me.”
Besides, Ripple-backed remittance services provider MoneyGram had recently announced a partnership with Indian money transfer firm EbixCash, a wholly-owned subsidiary of Nasdaq-listed Ebix as part of its expansion plans.
Source: Trading Economics
According to Trading Economics’ latest report, remittances in India increased to $16.373 billion in Q3 of 2019 from $14.641 billion in Q3 of 2019. Developments in the digital space coupled with regulatory clarity on the crypto market could essentially change the dynamics of the remittance market and it on a steady upward curve.
Ripple Price Analysis: XRP/USD bulls match to jumpstart rally to $0.35
- Ripple price must defend $0.28 support at all costs to set the framework for the pullback to $0.35.
- The seller congestion zone at $0.30 must come for gains above $0.30 to materialize.
Ripple is making a comeback towards the broken support at $0.30. The recovery follows a slump from highs marginally under $0.35 to lows of $0.27119. The Bollinger bands daily middle curve formed a confluence with the 21-day SMA, offering the bulls refuge and preventing more losses towards $0.25.
At the time of writing, XRP is doddering at $0.2914 after adding 1.48% to its value on Tuesday. The Asian session has been dominated by bullish influence, however, the bulls still lack enough power to disperse the sellers congested at $0.30. On the brighter side, intraday levels show that the trend is in favor of the bulls amid high volatility.
As long as the BB daily middle curve confluence with the 21-day SMA continues to hold, there is a possibility movement north will be forthcoming in the near term. Moreover, the price closed the day above the 200-day SMA as an indicator of continued buyer presence
However, a bearish divergence by the MACD shows that selling activity cannot be ignored. Therefore, guarding support at $0.28 should come among the bulls’ top priorities.
TraderSmokey, a popular trader and analyst on Twitter believes that Ripple still has the potential to lead in the altcoins recovery phase as long as it above to close its daily above $0.28.
If XRP closes this daily above .28$ on the USD Pair and above the daily 200MA on the BTC Pair I’ll be back in, but with less size. Risking less and if it starts going again I’ll add on the upside. A lot of flip flopping around XRP from me but it still looks fine in my opinion.