Moving money around the world is a very expensive venture. There are ways of doing it cheaper compared to traditional solutions, however. Arrington XRP Capital founder Michael Arrington is a big fan of Ripple’s XRP in this regard. The company recently moved $50 million worth of the cryptocurrency at the cost of $0.30, An impressive feat that further confirms that this asset can make a big difference.
In the world of today, cheap, fast money transfer solutions are in high demand. Card transactions and wire transfers often remain expensive and slow. Cryptocurrencies like Bitcoin can speed up the process. However, the world’s leading cryptocurrency is often criticized for its slow transaction times. This allows other digital assets to thrive and cater to this specific market.
Ripple is a major competitor in this department. The company delivers blockchain-based solutions for the financial sector. Its XRP asset can be used globally and has a very quick transaction confirmation time. A recent showcase by Michael Arrington confirms as much. His company, Arrington XRP Capital, moved $50 million worth of XRP in a matter of two seconds.
More importantly, this transaction cost $0.30. It is a negligible amount to pay for transferring such a vast sum of money. Examples like this highlight why the banking industry is paying more attention to this digital asset. With Ripple’x xRapid now being commercialized, the usability of XRP will only increase further.
We moved $50 million dollar worth of XRP into our company in 2 seconds and it costed 30 cents. There is no way to do that with fiat or Bitcoin.
— Steven Diep (@DiepSanh) October 18, 2018
The Future Looks Bright for XRP
This new example shows how viable Ripple’s native asset is for global transactions. It is evident transaction fees will always be a topic of debate. Bitcoin developers are trying to address this problem through future scaling solutions. For XRP, however, it seems the technology is in place already to facilitate such transfers on a regular basis.
The speed of transaction is a different matter altogether. Bitcoin will not rival a “clearance time” of mere seconds anytime soon. That is not necessarily a bad thing, but it is something that needs to be worked on moving forward. Ripple’s technology is superior when it comes to transactions like these, for the time being.
Solving the lingering problems in the financial sector remains an ongoing challenge. This particular transaction shows things can be improved upon fairly quickly. The technology is ready to be used. Over a hundred banks in Asia are exploring Ripple’s technology in this regard. Facilitating global transactions and cutting down on fees will benefit everyone in the long run.
Do you think XRP is a viable alternative to slow, expensive fiat currency wire transfers? Let us know in the comments below.
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