The outbreak of the COVID-19 virus has caused chaos in the financial markets. The global monetary system is under tremendous pressure. This has not happened since the 2018 crisis. There are hints in the air about the need to create another monetary system. This is necessary to maintain the functioning of the world at the same level. The number of dead and infected continues to grow. Cryptocurrency Ripple XRP offers a solution.
Cryptocurrencies offer a solution
Cryptocurrencies such as Ripple XRP offer several advantages over conventional paper money systems. Firstly, cryptocurrencies are purely electronic, and this is a huge plus. Also, no physical contact is required to transfer value. This greatly reduces the risk of infection with a virus and reduces the issue of the epidemic to nothing.
Cryptocurrency is multinational
Secondly, cryptocurrencies are multinational, as they are used in different countries – i.e. at the global level.
Thus, the transfer of value can occur over the longest distances. This, in turn, increases the number of cases of use in places where, for example, most state institutions are closed (which is already happening at the moment). In essence, this can increase the cost of digital currency, as more people are switching to a faster payment method. This method avoids bodily contact, such as touching paper money.
Thirdly, an intermediary is not required to confirm transactions, since actions on the network are automatically confirmed. The absence of a third party to confirm transactions gives cryptocurrency users the independence that is needed in times of chaos.
Blockchain and decentralized registries that cryptocurrencies operate on are some of the safest forms of technology that currently exist. However, such original systems sometimes require human intervention. For example, it is necessary to protect against network or spam attacks. In other words, legacy systems have real problems with self-sustainability and security.
Ripple XRP does not depend on financial systems, and also has reliable protection against various kinds of attacks. Unlike Bitcoin (BTC) and Ethereum (ETH), the RippleNet network is not controlled by a group of miners or countries. Ripple cannot solely make changes to the network without the permission of all its members.
RippleNet will continue to operate without Ripple in the event of its closure. Also, the network will exist without the current global financial system.
Ripple XRP provides the foundation for creating an alternative digital financial system. In case of crisis, it is a lifeboat and alternate aerodrome for the whole world.
COVID-19 continues to wreak havoc around the world. It is time for humanity to revise its obsolete financial principles. The issue of the use of digital currencies in daily activities is an ever-increasing need. We see evidence of this in the US Senate, where there is a heated debate on the adoption of the cryptocurrency law. We see that the Fed is also concerned about the creation of its new electronic payment system 24/7. Central banks of the world are rapidly developing stablecoins that are tied to precious metals, fiat money and other assets.
What does all this mean?
And here’s what – there is a redistribution of world wealth with its subsequent transfer to digital. This is the so-called New Game Field. Where the competitive advantage will be the country that is the fastest, and most effective, will begin to introduce and use digital technologies and blockchain in all spheres of life.
Ripple is already the undisputed leader due to its partnerships. Ripple recently announced the creation of stableblocks based on the XRP Ledger. This significantly increases the chances for central banks to accept stable Ripple coins. Financial institutions and banks are more interested than anyone else in holding their position in such a transition period. At the same time, they want to maintain their former influence and power and act as full-fledged players in the “new digital field”.
All this as a whole, defines the company Ripple and its native XRP token, no matter how much, the future for all mankind. Ripple XRP is assigned the key role of the progenitor of the new digital financial era.