While the regulatory hurdles will take some time to clear the way for cryptocurrencies, many global organizations have been found positively commenting on cryptocurrencies and their impact. The latest entrant to this list is World Trade Organisation (WTO) which has lauded XRP and has also highlighted Bitcoin, Ethereum and IOTA believing that these would impact the future of world trade
Ripple could transform global commerce- WTO
The WTO is all pleased with the work that Ripple and XRP are doing in the field of cross-border payments and believes it could have a dramatic and disruptive impact on the world’s financial system. According to the recent report released by WTO, which is called “The Future Of World Trade: How Digital Technologies Are Transforming Global Commerce”, states that
“Blockchain has the potential to profoundly transform the way we trade, who trades and what is traded.” It continues to say that “Blockchain is helping smaller businesses to start trading by supporting them in building trust with partners around the world.”
The report separately mentions Ripple as a company that could radically transform how financial institutions move money and how it would beneficial for foreign trade. According to the report,
“Ripple has ambitions to circumvent the correspondent banking model through its distributed ledger platform. It gives banks the ability to convert funds directly into different currencies in a matter of seconds and at little to no cost, without relying on correspondent banks.” “The company has licenses with more than 100 banks and financial institutions, but it seems that only a limited number of large operations have taken place to date. Banks are still testing the system.”
Also, read: “Make XRP the Official Crypto of the Tokyo Olympics 2020” Petition Gaining Immense Traction
IOTA, Bitcoin, and Ethereum all find critical mentions
Apart from Ripple, the WTO is also impressed with Bitcoin, Ethereum and IOTA and have mentioned them in the report. For IOTA the report states
“Blockchain is the most well-known distributed ledger technology (DLT), but an increasing number of other models are being developed that, like Blockchain, are distributed and use various cryptographic techniques, but that are moving away from the concept of ‘blocks’ – or even from both the concepts of ‘blocks’ and ‘chains’. One example of this is IOTA, a cryptocurrency designed for machine-to-machine communication, in which each transaction is linked to two previous transactions as part of the validation process to form a ‘tangle’ rather than a chain. Today, the term ‘blockchain’ is commonly used to refer more generally to distributed ledger technology and to the phenomenon surrounding it.”
For Bitcoin and Ethereum, the reports state that these platforms are pioneers in the emerging tech that’s highly resilient to cyber-attacks while pointing out the scaling challenges that remain in order for them to challenge the likes of Visa.
“Firstly, scalability of the main public blockchains remains limited due to the predetermined size of blocks and to the level of energy required to power the networks. The Bitcoin platform, for example, handles about seven transactions per second on average and the public blockchain Ethereum twice as many, while Visa can process 2,000 transactions per second, with peaks of 56,000 transactions per second.”
With WTO now backing cryptocurrencies and specially Ripple, we can expect more financial institutions and other participants of international trade to join the Ripple network in facilitating seamless payments across borders.
Will this WTO recognition help Ripple in gaining customers and XRP to gain at price? Do let us know your views on the same.
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