El The government world opens up to cryptocurrenciesBut there's something strange about this acceptance of cryptocurrencies. It would be logical to think that Bitcoin or Ethereum should be the first cryptocurrencies to enter government reserves. However, this isn't happening. Another cryptocurrency is becoming the preferred choice for institutional, state or banking affairs.Ultimately, traditional cryptocurrencies operate in a sort of parallel market with blockchain. Government institutions, on the other hand, require a much more open type of currency with other features.
Which cryptocurrency is displacing Bitcoin and Ethereum in this scenario? It is the digital currency known as XRP, which was originally designed to operate in banking environments. Therefore, it has much greater flexibility to integrate into traditional banking and central bank reserves.
Although there is talk of make reservations in Bitcoins, in the United States, the reality is that XRP has been used in that country, and it has become very important in state institutions without much talk about it. But, it cannot be denied that XRP is the cryptocurrency that stars in the communion between governments and cryptocurrencies..
PREPARE YOUR WALLETFeatures and advantages of the XRP token
Esta cryptocurrency appears during the year 2013. Initially, it is issued by a company called Open Labs, which changes its name to Ripple. Currently, this company is located in the San Francisco Valley, California, USA. For several years now, Ripple has been working heavily on the XRP token, which is a cryptocurrency quite different from Bitcoin. In this regard, we outline some of XRP's characteristics:
- Does not use crypto mining technology, but rather relies on a consensus among the currency's users. Therefore, it's a more decentralized cryptocurrency that isn't tied to the blockchain's strict set of blocks.
- Al to work without mining, it does not require such powerful hardwareThis is a huge advantage for government institutions, as they don't need to invest in expensive computers for their cryptocurrency activities.
- From the beginning, XRP was designed as a “supplement for banks”. The mission of this crypto is to serve as a bridge between different fiat currencies, making transactions much faster. This link with banking systems makes XRP more easy to incorporate into a nation's reservesWe must not forget that countries operate with a central bank for their economy.
- In the case of XRP there is a methodology called “token burning”, carried out to prevent the cryptocurrency from devaluing excessively. Furthermore, the tokens are burned every time a transaction is made.
- La cryptocurrency is very fast. Allows you to perform up to 1.500 transactions immediatelyThis is because it doesn't require the complicated calculations of blockchain, which are slowed down by the heavy workload required by computers and the web connection.
It remains to point out one particularity that is not technical, but legal. The XRP cryptocurrency was designed to operate within the banking system. Therefore, Its appearance also includes the legal framework for its operationThis is a notable difference from cryptocurrencies like Bitcoin or Ethereum, as the latter were born with an eminently technical focus. And the fact that XRP having an established legal framework is a magnificent advantage within the world of government institutions.
Bitcoin reserves in countries like the United States
President Donald Trump has given a boost to the use of cryptocurrencies. It has even promoted the creation of a cryptocurrency reserve for the US government. Bitcoins are part of this reserve, but curiously, they are not given priority. Bitcoin is completely centralized on the blockchain, In addition to its price having a very unstable volatilityAnd it's very difficult to make reservations with such an unstable currency!
For the reasons stated above, the XRP is the cryptocurrency that is most user-friendly for the United States government.It has been used for years in various institutions in that nation; but it has been done without any publicity or fanfare.
XRP conquers the most traditional spheres of economics and politics
The term financial technology has been used for some years. But now, we are talking about a peculiar relationship between technology and politics. And in this communion between the economic and the political, Bitcoin and other cryptocurrencies that use blockchain are completely closed to the political sphere. On the other hand, XRP is perfect for political negotiation, as it works by consensus among its users..
Politics needs the flexibility of consensus to move forward. So XRP explores a way to manage fully decentralized cryptocurrencies, where negotiation and The exchange of opinions between users is the matrix for the creation of cryptocurrency.
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What cambios does XRP allow compared to conventional cryptocurrencies? The truth is that these are quite significant changes. The management of cryptocurrency is no longer delegated to the impersonal and inflexible blockchain system. This is one of the advantages that XRP has had: it gives control of the cryptocurrency to individuals or institutions. Security is no longer understood as a "closed system in which no one intervenes”, but XRP is safe and reliable because “all its users intervene".
A curious fact is that this cryptocurrency began to develop in 2004, that is, it is prior to the appearance of Bitcoin. However, it was launched in 2013. To some extent, XRP takes some characteristics of the blockchain, but not all. At the same time, it is a cryptocurrency with a different philosophy. So the competition with Ethereum or Bitcoin seems to be brewing in an unexpected scenario: a world that combines politics with economics, and a way of managing cryptocurrencies much closer to the people who use these digital resources. For now, Bitcoin remains the queen of cryptocurrencies, but, in the In the political and governmental sphere, they have a very strong competitor called XRP.
