Ripple challenges some of the widespread crypto myths, debunking several misconceptions and paving the way for the future of finance.
Ripple is taking a stand against five persistent myths surrounding the crypto industry. As the world embraces cryptocurrencies and blockchain technology, Ripple aims to dispel misconceptions that could hinder widespread adoption and hinder businesses from reaping the benefits.
To fully utilize the benefits of #crypto, business leaders must decipher fact from fiction.
See through some common crypto myths and learn how the technology can improve operations, increase agility and lower costs. https://t.co/xO24FbKKIB
— Ripple (@Ripple) June 29, 2023
Myth 1: Crypto Is Merely a Trend
While many skeptics dismiss crypto as a passing trend, Ripple underlines the real-world utility of cryptocurrencies and blockchain solutions across various industries and applications.
Ripple argued that major brands like PayPal, Visa, and Starbucks have already incorporated crypto rewards for customers. Payments companies have also leveraged crypto-enabled solutions to enhance transaction speed, cost-efficiency, transparency, and reliability, addressing significant challenges in cross-border payments.
Notably, these claims are variable via reports from The Crypto Basic. Furthermore, central banks worldwide are actively exploring the potential of Central Bank Digital Currencies (CBDCs) to improve financial inclusion, enhance monetary policy effectiveness, and boost payment efficiency.
Ripple also highlighted a Bank for International Settlements study showing that over 90% of central banks are involved in CBDC exploration.
Myth 2: Crypto Is Risky and Volatile
Ripple contented that while crypto may exhibit market volatility, not all crypto-enabled solutions share the same characteristics, highlighting stablecoins such as Tether USD (USDT) and Circle USD (USDC) pegged to the US dollar, with minimal volatility.
Additionally, Ripple cited its payment solution that mitigates risk by automatically absorbing price changes during settlement, ensuring customers remain unaffected.
Myth 3: Crypto Is Unsustainable
While environmentalists argue against crypto given the energy-intensive processes involved with mining some coins, Ripple cited the XRP Ledger (XRPL) as the first major carbon-neutral blockchain designed with sustainability in mind.
Additionally, XRP, the native asset of the ledger, does not require mining, further reducing its environmental impact. Moreover, as The Crypto Basicreported last year, some crypto operations utilize renewable energy sources, enhancing sustainability efforts.
Myth 4: Crypto Solutions Are Complex and Problematic to Adopt
Similar to the internet’s early days, which required usability and connectivity improvements, the crypto industry has made significant progress in enhancing accessibility and functionality. Traditional financial institutions are integrating crypto technology into their services, responding to the increasing interest from consumers.
Ripple, for example, simplifies crypto solutions by streamlining cross-border payments, abstracting the complexity of integrating digital assets with traditional fiat systems, and preparing banks for a digital-first future with its CBDC Platform.
Myth 5: Crypto Lacks Global Regulatory Clarity
Ripple noted that governments worldwide have started recognizing crypto as a legitimate payment and enacting new legislative acts to regulate them. As The Crypto Basicdisclosed, Ripple recently received an In-Principle license from the Singaporean regulator.
The immutable nature of blockchain technology, ensuring transparent transaction records, allows regulators to identify and address unusual patterns and behaviors efficiently.