Home Cryptocurrency Cryptocurrency Battle: Ripple (XRP) vs Facebook’s Libra

Cryptocurrency Battle: Ripple (XRP) vs Facebook’s Libra

by Pragati Shrivastava
, Cryptocurrency Battle: Ripple (XRP) vs Facebook’s Libra

June 2019 highlighted an important event in the history of cryptocurrencies. Facebook announced the launch of its ambitious digital currency project – Libra – and this started a dialogue in the U.S. Senate Committee. While some crypto analysts believe that Bitcoin is headed closer to a new all-time high, Facebook’s Libra has started a power play with the Ripple Foundation.

Ripple vs. Libra

Ripple provides real-time global payment services to banks across 27 countries, through its strategic partnerships. Banks join RippleNet to process cross-border payments in real-time with end-to-end tracking and certainty and this helps them enter new markets at a fraction of the cost. Governments in countries planning a blanket ban on cryptocurrencies, like India, work with Ripple Net for outward remittance. We can deduce Ripple’s stronghold on the world’s banking institutions.

Libra, Facebook’s project, was considered bad news for Ripple, only until CEO of Ripple, Brad Garlinghouse said in an interview, “This week will probably be the best week of signed contracts at Ripple ever. Banks realize that Facebook is going to be a competitor in this space. They can’t compete with SWIFT.” He added, “This has been a call to action.”

Libra is Facebook’s digital currency that will be exchanged across its products – Messenger and Whatsapp. The purpose is to enable P2P transfers without the involvement of traditional banking infrastructure. Bitcoin aimed to bank the unbanked and now Libra does. With its wide circle of influence, 2.4 Billion users worldwide, Libra threatens Ripple as the cryptocurrency that will become popular among users almost instantly.

Ripple’s next move

Ripple strengthened its position with its strategic partnership with the world’s second-largest payment network – Moneygram. Moneygram is second to Western Union and has received an investment of $30 Million from RippleNet. After this investment, Ripple became the world’s biggest investor in cryptocurrency and blockchain businesses.

This strategic partnership opened new doors for Ripple and leading banks who didn’t accept partnership proposals earlier on, expressed interest immediately after. Moreover, Ripple’s CEO hinted at a probable partnership with Western Union as well.

MoneyGram stock price shot up by over 150 percent as the news of the partnership broke out. Interesting, XRP was rather unmoved by the announcement.

Facebook’s stock price has been on the rise since the beginning of June. However, Libra is under threat of being stalled or delayed due to the U.S. Senate Committee’s stand on its policies and governing body. While Facebook navigates legal crises, Ripple is ousting all competition through global partnerships and investments.

While Brad elaborated on the competition between Libra and XRP, he agreed with David Marcus on Bitcoin’s utility. He accepted that Bitcoin is a store of value. He added that it is different from a medium of exchange and stated that Ripple is bridging this gap. In his words, “I hold Bitcoin and I’m long Bitcoin. I think Bitcoin is a store of value so people hold it. XRP will be the bridge currency.”

Furthermore, Ripple has always aimed at providing regulatory compliant products unlike rival Facebook, who is popular for being at loggerheads with the house. Meanwhile, analysts are looking for ways that can enable Facebook and Ripple to co-exist in the market peacefully. Ripple has already established good relations with many renowned companies and may be far ahead of Libra in the race to the top.

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