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Banks should be afraid, very afraid of Facebook’s GlobalCoin, cautions Andreas Antonopoulos

Arijit Sarkar



Bitcoin [BTC]: Banks should be scared of Facebook's GlobalCoin, says Andreas Antonopoulos
Credit: pexels

Although the involvement of tech giants in cryptocurrency seems to be a positive development for the ecosystem, some leaders in the space have also predicted a stiff competition for survival in the not so distant future. Andreas Antonopoulos spoke about the same during one of his Q&A sessions, and discussed the expected disruptions associated with Facebook’s GlobalCoin launch.

Answering one of the viewer’s concerns relating to GlobalCoin overpowering Bitcoin [BTC], Antonopoulos responded,

“I’ve sold all my Bitcoin in order to buy Facebook’s GlobalCoin. No, I’m just kidding.”

Antonopoulos substantiated his belief in it not being a threat to cryptocurrency by stating that coins launched by non-crypto companies such as Facebook lack the fundamental characteristics of cryptocurrency and do not stand on the five pillars (open, public, neutral, borderless and censorship resistant) of the open blockchain. He added,

“Anything that’s created by any centralized organization that is subject to specific laws, cannot achieve any of these five pillars. And the reason they cannot achieve is because the law prevents them from doing so.”

Antonopoulos also highlighted the fact that regulated companies are limited by Office of Foreign Assets Control’s (OFAC) list that prohibits institutions from performing monetary transactions with specific number of people and business entities. Existing laws also require financial bodies to identify the sender’s and receiver’s name and location, which further demands KYC documentation, essentially materializing into a replacement of banks.

Antonopoulos stressed on the fact that Facebook, despite being borderless in terms of social content, is still blocked from access across various jurisdictions across the globe. To clarify further, he said that Facebook’s new coin is comparable to PayPal added,

“They are not a cryptocurrency, they are a bank. So, banks should be really scared of an experienced technology company.”

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Ripple’s partnership with Euro Exim Bank explores possibilities other than the use of XRP

Namrata Shukla



Ripple's partnership with Euro Exim Bank explores possibilities other than use of XRP Ripple's partnership with Euro Exim Bank explores possibilities other than use of XRP
Source: Pixabay

Ripple, the real-time gross settlement system, has been working hard towards the adoption of their native cryptocurrency, XRP. While proponents of other cryptos are working towards increasing the use cases of the coin, Ripple took XRP to the banks and provided them with a liquidity solution called xRapid.

Euro Exim bank, an international financial institution, partnered with Ripple in January 2019 to use its services like xRapid and xCurrent. Head of Compliance and Operations of Euro Exim Bank, Graham Bright, stated in an interview with that despite the fact that he worked with SWIFT for 20 years, Ripple would work as a complementary network to SWIFT.

“I don’t believe Ripple is going to replace SWIFT. Ripple is one of the complementary networks which is going to allow those institutions who need real-time to make use of that. We’re also seeing that SWIFT are changing their network capabilities, so real-time will also be a possibility as well but we may also see Ripple XRP moving across the SWIFT network as a currency when we are perhaps using FX.”

Bright also revealed that Euro Exim Bank will be announcing a cryptocurrency exchange soon and it would list various cryptocurrencies and not just XRP. However, their core business remains trading finance.

He also said that Ripple are trying to expand the usage and not restrict it to just using XRP. Euro Exim Bank is currently investigating how to embed instructions for bonds/derivative/foreign exchange inside a Ripple message, he said.

With the cryptocurrency ecosystem booming, Ripple’s XRP has risen, along with its technological services. As for XRP’s performance in the market, it was falling by 1.03% over the day and was valued at $0.4268 with a market cap of $18.14 billion. The 24-hour trading volume of the coin was noted to be $1.22 billion, as it noted a growth of 6.13% over the past seven days and continued to soar by 0.32% within the hour.

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