XRP has been in the first ranks per market capitalization among cryptocurrencies for years. Currently, it occupies third place, very close to Ethereum (ETH) and Bitcoin (BTC). Despite this bright fact, the XRP price hasn’t been bullish for a long time.
However, the last seven days were a race-up for the currency. The price started at 0.29 USD, and now it’s elevating to over 0.69 USD, and still running. This represents a 137% increase only during the last week. Market capitalization has more than doubled along with it, going from $13.6B to $31.5B, which means a 131% increase; according to CoinMarketCap.
Not even Bitcoin on its new bull run has these percentages. In the case of the current XRP price, the main reason for this would be related to new positive crypto-regulations in the United States. Last November 20, the U.S. Treasury Department’s Office of the Comptroller of the Currency (OCC) published a proposal of new guidelines for financial institutions.
The bottom line of it is that the national banks can’t deny their services to legal (but disfavored) businesses, like companies that work with cryptocurrencies, without assessing the specific risks in every instance. Among said businesses, we have the American Ripple Labs, founder and main user of XRP in their cross-border corporate transactions.
Currently, +300 financial institutions across +40 countries worldwide have joined the RippleNet platform to make faster cross-border transactions by using, precisely, the XRP cryptoasset before exchanging the funds into local currency. Thanks to the new legal proposal in the U.S., this work for Ripple Labs and XRP could become even easier and more open.
Beyond U.S. and XRP price
Luckily, not just the U.S. regulators are aiming to let this blockchain ecosystem grow. As Ripple described recently, Peter Kerstens, Adviser at European Commission and Co-Chair of the FinTech Task Force, highlighted the need for good regulations that don’t cut the development:
“Regulated financial instruments tend to attract regulated financial institutions. The lack of a regulatory framework is, in my view, one of the reasons why we haven’t seen further development of this (…) Rather than apply our legislation in a negative way to ban activities [we want] to create a regulatory framework that enables [innovation], but of course also…ensure market integrity, financial stability, and investor protection.”
Meanwhile, RippleNet and XRP are being used as useful tools by several top-companies. Names like Santander, Standard Chartered, MoneyGram, SBI Remit, American Express, and even NGOs like Mercy Corps are included in these services, providing more liquidity and community for this currency.
Featured Image by WorldSpectrum / Pixabay
Originally published at https://blog.alfa.cash on November 23, 2020.