Ripple and the associated crypto currency XRP polarize probably like few other Top Coins. On the one hand, the startup from San Francisco 2019 could win many new partners for its products and the network. On the other hand, there are also serious difficulties. Ripple is confronted with a lawsuit in which investors are complaining that the ICO did not go through with the right things. It has yet to be clarified whether XRP is an asset or an economic good.
In addition, the XRP price in 2019 performed anything but well, which is disturbing investors. But now there was once again a ray of hope for all fans of the 3rd largest crypto currency by market capitalization. At the World Economic Forum in Davos, the US Secretary of the Treasury spoke positively about financial companies like Ripple.
US Treasury Secretary a secret Ripple fan?
The days have probably gone by for virtually no one: in Davos, Switzerland, everything that has rank, money, name and opinion is currently meeting again at the World Economic Forum 2020. With such a gathering of personalities from politics and business, among others, the US Secretary of the Treasury Steven Mnuchin is of course not to be missed.
During his appearance in Davos, the topic of the transformation of the payment industry also came up. Mnukhin then said that the US government was very conscious of the changes and was surprisingly positive in Ripple’s view. The politician stressed that the US government supports companies that improve cross-border payments:
“The benefits of cross-border payment systems lie in reducing costs for consumers and businesses. We certainly support the companies that are working on this”.
Ripple CEO gratefully takes up comment
Even though Mnukhin did not explicitly mention Ripple in any of his statements, the statements still resonated with those of some crypto experts. Thus, Ripple CEO Brad Garlinghouse gratefully took up the minister’s submission and used it for publicity of his own company. He posted the following post on Twitter.
The competition never sleeps
Ripple’s network now includes well-known companies such as Western Union, MoneyGram and the Spanish bank Santander. Only MoneyGram was mentioned by name by Mnuchin. The rest is first of all the interpretation of Garlinghouse. Nonetheless, Ripple has worked hard over the last few years to be at the forefront of the cross-border payment revolution.
But as in other places, the competition is not sleeping. Some major banks are already working on their own solutions. In addition, many countries are planning to develop their own state crypto-currencies (so-called CBDC), which could then be transferred more easily across borders. Ripple must therefore continue to assert itself, but is also in a good position. This is shown both by the work of the last few years and by the statement of Steven Mnuchin, who at least positively emphasizes the niche of the start-up.