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Published on: Aug 19, 2024
#Financial Markets
#Crypto 360
In a revolutionary step, the Bank of Japan (BoJ) recently announced that every bank in the country will introduce transactions in the XRP token by 2025. XRP is the native token of the digital payment provider Ripple Labs.
As per the BoJ, customers in Japan can execute transactions in XRP tokens with several merchants, beginning 2025. In exchange for using XRP tokens, customers can even earn rewards in Crypto Trading Fund (CTF) tokens. Customers can redeem these CTF tokens for products or exchanged for yen, the country’s fiat currency.
The CTF tokens are native to the XRP Ledger System. Due to their limited supply, the demand for these tokens is expected to rise in the later years.
Tokyo-based financial services company, the Strategic Business Innovator Group or SBI Holdings, had earlier hinted at a plan to launch the SBI VCTrade platform which will allow verified members tp acquire XRP tokens using the yen. The SBI VCTrade platform is expected to go live in March next year which could be a real gamechanger for the adoption of XRP in Japan.
SBI Holdings CEO Yoshitaka Kitao is a strong votary of XRP due to its usage in cross-border transactions. He believes the role of Ripple’s technology is bound to grow as far as international money transfers are concerned.
Kitao also predicted a broader role of XRP tokens within the banking sector of Japan by 2025 as it is getting widely adopted by several large corporations and payment service providers. The latest step of the central bank, in coordination with the country’s leading banks and payment service providers, has the potential of turning the tide in Japan’s favour in the crypto landscape.
Ripple recently launched a new stablecoin, Ripple USD (RLUSD), that is pegged to the US Dollar. The stablecoin is issued by both the XRP ledger and Ethereum (ETH) blockchain.
Meanwhile, Ripple is still engaged in a lengthy court battle with the U.S. Securities & Exchange Commission (SEC). Last year, the court ruled that though Ripple’s sale of XRP tokens to retail investors didn’t violate any laws, the sale of XRP tokens to institutional investors constituted a sale of unregistered securities.
Image: XRP/USDT recent price chart, by BitDelta
So, the latter was a violation of securities laws in the U.S. Early this month, the court penalised Ripple $125 million for the violation. The figure is nonetheless only a fraction of the $2 billion penalty sought by the SEC.
In short, the court decision, coupled with the anticipation of wider adoption of XRP tokens due to new initiatives, augers well for Ripple Labs. Since the latest court decision, XRP has witnessed an appreciation of more than 25% in its value and was exchanging hands at $0.5776 on charts at press time.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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Oct 29, 2024
Crypto
