US-based blockchain company Ripple appears to have scored a coup in the central bank digital currency (CBDC) sector, with the mountainous Asian kingdom of Bhutan enlisting the XRP-affiliated firm to help it pilot a digital currency.
Ripple claimed that it had partnered with the Royal Monetary Authority of Bhutan (RMA), the nation’s central bank, in a deal that would see the latter “use Ripple’s CBDC solution to pilot a digital ngultrum.”
The firm added that the project would help Bhutan “enhance digital and cross-border payments,” as well as “expand financial inclusion efforts and extend its commitment to sustainability.”
The project will be “based on” technology used by the XRP Ledger network, and, in a post on its website, Ripple claimed:
“The power of the technology underlying the XRP Ledger, combined with Ripple’s experience in cross-border payments and tokenization, will harness tremendous speed, cost and innovation advantages.”
This, the American firm claimed, would help “support” the RMA’s “mission” of enabling “easier, faster and more affordable payments, both domestically and internationally,” and boost “financial inclusion by 85% by 2023.”
Ripple explained that its CBDC solution “leverages a private version of the public, open-source XRP Ledger,” and “ensures central banks have greater control over issuance, management, privacy and validation than they would get” using public blockchain networks.
The news comes as a boost for Ripple, which already has a strong foothold in Asia, thanks in no small part to its partnership with Japan’s financial giant SBI. The two firms co-run a private sector-focused, continent-wide cross-border payments operator named SBI Ripple Asia.
But Ripple appears to want a piece of the CBDC action, too.
Central banks all across Asia are now scrambling to get CBDC projects online. And while the continent’s larger economies are happy to let their central banks handle the projects, others have instead turned to private sector partners. These include the like of Cambodia, which partnered with a Japanese firm to launch one of the world’s first-ever CBDCs last year.
In November last year, Ripple posted a job ad for a CBDC-related role – a Senior Director for Central Bank Engagements.
Also in 2020, David Schwartz, Ripple’s Chief Technology Officer noted that XRP-related solutions would likely be of use in CBDC distribution-related programs, noting:
“XRP and the XRP Ledger were built specifically for this kind of role.”
And in March this year, Ripple revealed that it was piloting a “private ledger for central banks launching CBDCs.”
On its website, Ripple claimed that its private ledger was “based on the same blockchain technology that powers the XRP Ledger”, so was “built for payments.”
The firm also noted that it would harness its payment network RippleNet technologies to “enable ultra-high throughput use-cases such as micro-payments.”
At 11:10 UTC, XRP trades at USD 0.989 and is up by 6% in a day, trimming its weekly losses to less than 12%.
Ripple Price Analysis: A Bullish Reversal From The $0.88 Support Hints At A 35% Gain In The Upcoming Trading Session
The XRP coin is currently in a short-term sideways trend. The coin price has recently rejected from the overhead resistance of this range and has plunged back to the bottom support of 0.88. However, The technical chart and indicators suggest a positive turn for them coin
Key technical points:
- The XRP coin price action forms a consolidation range in the daily chart.
- The 200-day EMA line is providing constant dynamic strong support to the coin price.
- The intraday trading volume of the XRP coin is $1.5 Billion, indicating a 70.25% gain.
Source- XRP/USD chart by Tradingview
The XRP coin price consolidates within a range as it resonates within the $1.40 and $.088 mark, as shown in the price chart. However, despite multiple breaches, the support zone near the $1 mark acts as a crucial support zone, and the breakout above it can be an excellent entry opportunity for traders.
The 200-day EMA coincides with the $1 support zone providing multiple factors to bring a bullish reversal. However, the price is below the 50-day EMA, which is falling to give a bearish crossover with the 200 days EMA.
The Relative Strength Index(44) continues to move in a downtrend after facing rejection within the overbought zone. Nonetheless, the recovery in the slope from the oversold territory brings bullish indications.
XRP/USD Chart In The 4-hour Time Frame
Source- XRP/USD chart by Tradingview
The falling XRP prices show huge potential for a bull run as it breaks above the resistance trendline of the falling channel in the 4-hour chart. Hence, once the prices are stable above the $1 mark, we can observe the price jump to the $1.40 mark.
However, traders need to be careful with the pivot points showcasing resistance levels at the $1.06 and $1.16 mark. Moreover, on the flip side, the support levels are at the $0.97 and $0.87 mark.
Ripple’s Latest Crypto Service for Financial Companies to Allow XRP Trading
Amid the ongoing XRP lawsuit, Ripple took a bold step by launching a crypto product, called the Liquidity Hub, which will allow financial service firms to offer the buying and selling option for cryptocurrencies. According to CNBC, Ripple noted that cryptocurrencies like, the OG Bitcoin, Ethereum, Litecoin, Ethereum Classic, Bitcoin Cash, and the most controversial XRP will be presented as offerings to enterprises.
Set to launch by 2022, the Liquidity Hub aims to facilitate access to crypto via manifold sources such as, market makers, exchanges, and over-the-counter trading desks, with Coinme, a U.S. based Bitcoin Exchange and ATM operator, as its first client. Furthermore, the Liquidity Hub plans on adding Non-Fungible Tokens (NFTs) to the list of its asset offerings.
“We have a long history of working with financial institutions, crypto exchanges, brokerages and market makers, which our enterprise customers can now directly benefit from…We’re planning to support a variety of assets and have plans to expand to more tokenized assets like NFTs in the future.”, Asheesh Birla, the general manager of RippleNet, a financial messaging service used for cross-border payments, told CNBC.
Ripple Remains Confident of its Crypto Product, Despite the Lawsuit
Birla defined Liquidity Hub as an “aggregator for various liquidity venues and individual assets, the way that Google Flights is for airlines and flights.” Additionally, another feature provided by the Liquidity Hub will be the facilitation of lines of credit through XRP to prevent its client enterprises from having to pre-fund accounts to use Ripple’s latest crypto service. Nevertheless, it is impossible to turn a blind eye to the historic XRP lawsuit, where Ripple appears to be on the ‘readily agreeing to a settlement’ end. However, Ripple claims that despite the lawsuit, the company’s global traction has not experienced any drop whatsoever.
“Companies doing this today have to park working capital at an exchange while waiting for funds from weekend activity to be deposited in a bank account…We started offering this as part of ODL and it’s one of our most sought after features…Despite headwinds in the U.S. with the SEC, our traction with customers globally hasn’t slowed down”, said Birla.
XRP Whales Are Moving $24 Million Worth of Tokens from Exchanges Amid 6% Rally
XRP whales are continuously moving their funds away from exchanges amid accelerated cryptocurrency market rally
Following the recovery on the cryptocurrency market, XRP whales are joining the global outflows trend and moving their funds away from centralized exchanges like Bithumb and FTX.
Transactions on chain
According to the Whale Alert transaction tracker, two transactions have appeared on the XRP blockchain: the latest transaction was made from the FTX exchange to an unknown wallet and was worth $14 million XRP coins. The first transaction appeared one hour before the FTX withdrawal and was worth $10 million.
According to data from the tracker, the Bithumb wallet transaction is being made to another wallet labeled with the exchange’s name. It’s most likely tied to the fact that in order to withdraw funds, Bithumb uses multiple hot wallets rather than one large address.
The FTX transaction, on the other hand, is being made to the wallet of a completely different HitBTC exchange. The wallet of the exchange holds 26 million XRP and is most likely being used as another hot wallet for placing orders.
XRP short-term rally
Both transactions have been made during the short-term rally present on the XRP trading pairs. Currently, Ripple is trading in a short uptrend and remains at 6% growth since the last week.
Ripple was one of the victims of the global cryptocurrency market correction that led to the retrace of all the major cryptocurrencies, including Bitcoin and the larger altcoins. After a recovery on most of the traditional markets, the cryptocurrency market followed with an average 10% recovery.