- Ripple transactions consume less energy than Visa and Mastercard, with an average of 0.000011 KWh.
- German companies are the most likely in Europe to accept payments with cryptocurrencies in the next 18 months.
A Deutsche Bank report entitled “The Future of Payments: Series 2” addresses the adoption of cryptocurrencies in the global landscape. The banking institution makes its predictions for the long term and the biggest challenges facing the integration of cryptocurrencies into the mainstream.
The main challenges, according to the report, are scalability and energy consumption. On the first point, it appears that Facebook’s Libra project has made progress by using the FastPay service. As the chart below shows, Libra ranks second with 80,000 transactions per second (TPS), behind China’s CBDC with 300.000 TPS.
In these terms, Ripple‘s network ranks 5 below China’s CBDC, Libra, Visa and Mastercard. However, Ripple occupies the first position in the amount of energy consumed per transaction. Data cited by Deutsche Bank indicates that unlike Bitcoin’s network, Facebook’s Libra, and the networks of the largest payment processors in the world, each Ripple transaction spends 0.00001133 KW/h, making it the least energy consuming.
However, as numerous experts have noted, the reasoning behind comparing the power consumption of the Bitcoin network to other networks needs to be contrasted with more data. The host of the “What Bitcoin Did” podcast, Peter McCormack, most recently pointed out the poor comparability of Bitcoin and the Visa network.
The purpose of the two networks is different and, therefore, McCormack believes there can be no point of comparison. In addition, he adds that it is necessary to determine the power sources used to keep the Bitcoin network online.
3/ Further you also failed to:
– Look at the energy sources for #bitcoin mining
– Discuss the disastrous environmental impact of gold mining
You can use pejorative terms such as #bitcoin obsessive but it won't make your work any less misleading.
Anyway here to help, just ask.
— Peter McCormack (@PeterMcCormack) January 27, 2021
More companies will accept Bitcoin as a means of payment
In 2020, Deutsche Bank made two predictions. First that companies like PayPal and Facebook would add crypto capabilities to their services by early 2021. Part of that prediction has come true. Facebook’s ambitions to have a native payments network are still in the pipeline, while PayPal is making rapid strides to enable its 300 million users to trade cryptocurrencies.
The report also predicted that digital central bank currencies (CBDCs) would become more important. With the digital yuan in an advanced testing phase, other countries have accelerated efforts to develop their own digital currencies. This will have an impact on the regulation of the crypto space in 2021, the report predicted for the current year:
Using cryptocurrencies for payments will accelerate (…). Central bankers and policymakers will react by speeding up their existing research and launching pilots. China is likely to continue to dominate the race. In the long run, CBDCs will displace private cryptocurrencies and become the norm.
Whether the latter prediction will come true remains to be seen. A survey by the banking institution found that there is still a large percentage of companies in Europe that show resistance to accepting cryptocurrencies as a means of payment in the next year and a half. Among the companies surveyed, German firms are the most willing, followed by companies in Italy and Portugal, as the following image shows.
Ripple Deepens its Footprint in The Middle East Through Pyypl
Ripple deepens its footprint in the Middle East region through a partnership with international blockchain-based financial services company Pyypl.
Ripple announced the news in a blog post on Monday, October 25. Through the partnership, two companies aim to bring instant, low-cost remittances to the Middle East and North Africa (MENA) region, starting with the United Arab Emirates (UAE).
Pyypl is a non-bank financial services provider focusing on the Middle East, Africa, and Central Asia. According to the announcement, Pyypl has started using RippleNet’s On-Demand Liquidity (ODL) payment service in the Philippines. This means users of Pyypl can now send money from UAE to the Philippines. The companies have plans to expand the ODL-powered payment network to new markets as well as explore additional use cases in the future.
ODL is the payment service provided by Ripple’s global payment network RippleNet. Through the On-Demand Liquidity (ODL) service, RippleNet leverages the digital asset XRP as a bridge between two currencies, eliminates pre-funding of destination accounts, reduces operational costs, and unlocks capital.
In ODL, the money to be sent is converted to Ripple native token XRP and then sent over by using Ripple’s XRP ledger. On the receiver side, XRP can be converted back to the currency the receiver wants. According to the company, sending money anywhere in the world takes as little as three seconds.
According to Ripple, the Middle East and North Africa (MENA) region is home to two of the top three remittance corridors in the world. Traditional remittances are often plagued by slow, expensive, and opaque transactions. However, by using ODL and XRP, Pyypl will now provide instant, low-cost remittance options for people sending money into and out of the region. The announcement notes that “XRP will not be held within the UAE and transactions will not involve the currency AED as part of the payment flow.”
Antti Arponen, Co-Founder and CEO of Pyypl, commented:
“We’re excited to be Ripple’s first partner of choice to bring the deployment of ODL to the Middle East. This enables our ever-increasing number of users to deliver remittances instantly and cost-effectively. We’ve also reduced our inefficient use of capital through ODL, and look forward to an exciting rollout of its capabilities across the region.”
Ripple is not the new entrant to the MENA region. As Crypto Economy reported, Ripple has recently announced a partnership with Qatar National Bank (QNB) with a focus on cross-border payments for Qatar citizens. Ripple also established a regional headquarters in Dubai in 2020 to support its customers. In the previous week, Ripple announced a parthership with Al Ansari Exchange, the UAE-based foreign exchange, to provide remittance service from UAE to Malaysia.
Ripple Collabs With Pyypl to Expand ODL Services in MENA Region
- Ripple partners with Pyypl to expand ODL services in the MENA region.
- Through this ODL synergy, users will enjoy instant and cheap remittance services.
- The United Arab Emirates (UAE) will be the first to access this.
Ripple announced that it is now in a fantastic partnership with blockchain-based fintech company Pyypl to continue expanding On-Demand Liquidity services particularly, in the Middle East and North Africa (MENA) region.
Moreover, with this partnership release, Ripple and Pyypl will work hand-in-hand to provide instant and low-cost remittances services. Based on the report, among the other MENA regions, the United Arab Emirates (UAE) will be the first to experience the ODL services.
Notably, this fintech innovation by Ripple aims to make remittance services fast and easy in terms of the to-and-fro of transactions in the MENA area. Of note, as part of the payment flow, “XRP will not be held mainly in the UAE.” Also, all the transactions under this ODL synergy in the country will not involve AED — the UAE native currency.
By banking the unbanked, Pyypl will meet its long-term goal of providing digital payments for the underserved smartphone users in the MENA area. Best of all, Pyypl will also use Ripple’s ODL to remove high-cost pre-funded accounts needed in the traditional cross-border payments.
Pyypl’s Co-Founder and CEO Antti Arponen said,
unlocking these previously trapped funds can help better grow and scale the business.
To cut a long story short, this announcement carries Ripple’s ever-growing presence and momentum ahead in the Middle East and North Africa.
Warrant Buffet backs RippleNet’s Nubank while SEC vs Ripple case drags on
- Warren Buffet’s conglomerate Berkshire Hathaway has invested $500 million in Brazilian digital bank Nubank, a member of RippleNet.
- The SEC v. Ripple case drags on as both disagree on the nature of documents.
- Ripple has argued that the SEC has not articulated a link between the extra documents in its decision-making.
SEC v. Ripple proceedings continue as the court concedes SEC’s extension request and pushes the expert discovery deadline to January 14. There are several complications in the case, and the American regulator did not object to filing exhibits being filed under seal.
Berkshire Hathaway invests in RippleNet member bank
Warren Buffet’s conglomerate firm Berkshire Hathaway poured in a $500 million investment in Brazilian digital bank Nubank. The Latin American NEO bank is the largest financial technology bank in the region. It is a member of RippleNet and has engineering offices in Berlin, Argentina and Mexico City.
The bank recently announced the investment. Nubank’s partnership with RippleNet was revealed nearly around the same time when Buffett’s Berkshire Hathaway made the $500 million investment.
In Ripple’s defense against the accusations made by the Securities & Exchange Commission (SEC), the firm has claimed that the SEC failed to “articulate” a link between the three extra documents (requested by Ripple) and its decision-making process.
Ripple’s October 22 filing reiterates that the documents are highly relevant to the defense. Further, Judge Netburn has ordered the SEC to respond to Ripple’s interrogatories and identify the terms of the “investment contract” from XRP sales.
The order reads:
Accordingly, Defendants’ motion regarding Ripple Interrogatory No. 2 is GRANTED, and the SEC must supplement its response to Interrogatory No. 2 to identify any specific contractual terms and not just implicit and explicit promises as previously identified.
Mike Novogratz, the founder and CEO of Galaxy Digital, has argued that community resilience in the SEC v. Ripple case has led XRP’s price to multiply three times despite the ongoing lawsuit.
Novogratz called XRP
a diversified financial services and investment management innovator in the digital asset, cryptocurrency and blockchain technology sector.
FXStreet analysts have evaluated the XRP price trend and predicted that the altcoin’s price will likely hit $1.50.