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22 Dec, 2019 09:23

Ripple is thriving off the failures of antique SWIFT system, market analyst tells Boom Bust

Ripple is thriving off the failures of antique SWIFT system, market analyst tells Boom Bust

Ripple, the company behind cryptocurrency XRP, has raised US$200 million in its latest investment round - bringing its valuation to $10 billion - as the startup aims to further grow its cross-border payments business.

However, the success of the San Francisco-based firm, with its growing base of consumers sending live payments, did not result in a huge movement in XRP, which has the third-largest cryptocurrency market capitalization behind bitcoin and Ethereum. This can be explained by the fact that the token is a “specific kind of crypto,” making it uninteresting for regular investors, according to Jeffrey Tucker of the American Institute of Economic Research.

“That does not mean it’s not going to change the world. I think it’s an extremely important technology, because it’s thriving off the failures of this antique SWIFT system,” the analyst told Boom Bust.

“Our legacy financial systems are incapable of dealing with the new age of globalization so taking crypto to kind of fill this market niche... and XRP has been really valuable in that sense.”

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