Ripple’s XRP Is The Only “Battle-Tested” Cryptocurrency, Says Head Of Japanese Financial Giant SBI Group

Omar Faridi
  • SBI Group CEO Yoshitaka Kitao, who also leads SBI Ripple Asia, stated that Ripple’s XRP token is scalable and will become the global standard for cryptocurrencies and fiat money.
  • Kitao has also said that “Bitcoin is too expensive” and that it’s just a speculative asset people are holding, while “hoping it will increase in value.”

Yoshitaka Kitao, CEO of Strategic Business Innovator Group (SBI), a giant financial services firm based in Japan, recently stated at a Blockchain event that he’s hoping Ripple company’s XRP cryptocurrency becomes the world’s standard of digital currency and fiat money. While speaking at the “Japan Blockchain Conference”, the SBI Holding chairman praised blockchain technology and predicted that it would continue to sustain its fast growth and adoption rate. Kitao added that blockchain would be instrumental in transforming the global financial system.

The SBI CEO further noted that Ripple’s XRP cryptocurrency is quite efficient in processing cross-border transactions, and that it will lead to a more reliable and cost-effective financial system. Moreover, Kitao said that the typical issues related with international payments processing using the traditional banking system could be resolved by utilizing XRP. Notably, the SBI chairman has reportedly been following the development of Ripple’s suite of financial products since January, 2016. This was well before the XRP token’s market capitalization reached record level highs in December, 2017, briefly surpassing $50 billion according to data from CryptoCompare.

“Battle-Tested” Cryptocurrency

Kitao, who’s experienced the crypto market’s highs and lows, remarked that XRP is the only technology that has been “battle-tested”, while also saying that the cryptocurrency will give added support to the existing banking infrastructure. The Japanese businessman stated, “Surveying the market, Ripple was the only company that has delivered battle-tested enterprise solutions and global bank customer traction, including commercial deals with top banks already signed in Asia Pacific. Distributed financial technology is undoubtedly transforming financial infrastructure and we’re excited to drive its adoption throughout Asia,”

Kitao is one of the main partners at Ripple company and has always been a strong supporter of cryptocurrencies and blockchain technology. His association with Ripple dates back to May 2016 and the SBI Group has been working closely with the creators of XRP through a joint initiative called SBI Ripple Asia. Japan, which has the world’s third highest GDP of nearly $5 trillion, has been leading the charge when it comes to adopting blockchain technology and cryptocurrencies.

“Real Life” Use Cases

Commenting on the various use cases for blockchain, Kitao said, “We want to take blockchain beyond financial. There’s a lot of speculative demand around cryptocurrencies, which is why the price is going up so quickly, but people need to think about how these technologies are being used in real life and how they can improve people’s businesses.”

In previous interviews, the SBI chair has stated that not only is XRP the ideal digital currency for payments, but also more recently that Bitcoin (BTC) is too costly and that “people are just holding it and hoping it will increase in value.” While criticizing bitcoin at the Japan Blockchain Conference, the flagship cryptocurrency along with Bitcoin Cash (BCH) and Ripple (XRP) are all listed on SBI Virtual Currencies [SBI VC], the financial giant’s own crypto exchange, which launched in early June, 2018.

Ripple Co-Founder Steadily Cashing Out His XRP: Report

Colin Muller

The crypto analytics group Flipside have posted a new report on XRP’s cash flows, and the general discovery is that there is not much actual use of the digital asset by ordinary users.

Flipside have observed that most of the flow of XRP occurs exclusively between exchanges and top holders of the asset, whom we might term “whales”. Most of the rest is flow between the asset’s escrow system, the founders’ wallet, and exchanges.

The group has produced an animated infographic of these flows.

Very little economic usage?(source: Flipside Crypto)

The report also found that flows generally dropped significantly during the weekends. Comparing this trend to other high-volume digital assets like OAN and Zilliqa (ZIL), Flipside surmise that this is further evidence that XRP’s primary use is for trading and speculation on exchanges.

The report reads:

The fact that these users are only trading with exchanges suggests that most people using XRP are either market makers or speculators, and not actual consumers.

Finally, piggybacking on the recent revelation that Ripple Labs co-founder Jed McCaleb has started selling XRP en masse, Flipside observed that this trend is continuing with the use of a seperate wallet owned by McCaleb. This wallet is using XRP’s built-in decentralized exchange (DEX) to trade for USD, and then liquidating this USD transfer through Bitstamp.

CryptoGlobe recently reported that the so-called “XRP army” seems to be fading, with a sharp drop recently in the asset’s mention on Twitter; this drop is far sharper than that observed for other cryptos like Bitcoin and Ethereum.

collapse vs bitcoinXRP chart by TradingView

XRP has been collapsing in price compared to Bitcoin, so far in the month of May.

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