blockmanity.com
Founder of the Nano Cryptocurrency Colin LeMahieu spoke about XRP in an interview with Crypto Briefing. He said that XRP is “slow and too centralized” for the banks to adopt.
Colin says that banks are unlikely to adopt XRP because it would give Ripple the company a monopoly on the Foreign Exchange market as they own more than 55% of the entire supply in an escrow account.
He said:
“Many FX firms I’ve talked with have considered and dismissed them based on the fact that one company holds over 50% of the market cap, A single company holding this much of a position on a currency isn’t something they would accept from a risk perspective.”
Ripple the company claims that XRP was not created by the company but was instead “gifted” by the founders. 80% of XRP’s supply was gifted to Ripple labs at the time and 20% was retained by its creators. Ripple has locked 55% of its supply in an escrow account from which 1 Billion tokens will be released every year.
Are Banks Really Using XRP?
Ripple has been using XRP tokens to incentivize banks to join their network, although the company has been successful in partnering with large banks such as Santander, SBI Holdings, Money Gram, etc, a majority of these partnerships had nothing to do with its xRapid product which uses the XRP Token.
XRP is used by some payment providers but has not met the expectation set by Ripple to be used by banking institutions. Ripple mainly blames a lack of regulatory certainties around Cryptocurrencies the reason for a lack of adoption of XRP.
Colin then goes on to speak about the advantages of Nano over XRP, he claims that Nano is more of a decentralized currency than XRP hence more suited for the Forex markets. Nano has a block time of 3 seconds compared to XRP’s 10 seconds and Stellar’s 5 seconds.
Even though Colin’s perspective is biased toward Nano, there is truth to his claims.