Cryptocurrencies are affecting the way consumers and businesses – in the US and beyond – interact with financial institutions, the planet, and each other. However, crypto remains an abstract, misunderstood concept. It is important to understand what is real about crypto and how it has become a very real force driving US innovation.
Like many other tech innovations that have fueled the economy, crypto – when used properly – offers tremendous benefits and opportunities to people, businesses, and governments. Crypto stands for strong innovation and companies like Ripple are using this innovation in a transformative way.
MEET RIPPLE AND XRP
Ripple, a global technology company headquartered in the United States, enables financial institutions in over 55 countries to send money faster, with lower fees, and more transparency.1 While developers use the cryptocurrency XRP for hundreds of solutions, Ripple uses XRP because it is fast, efficient, reliable and climate-neutral compared to other crypto alternatives – and seamlessly supports our customers’ compliance requirements.
Ripple is far from the only company using crypto to align with the needs of consumers, businesses, banks and regulators. Besides us, many others are working on eliminating friction losses, reducing costs and increasing transparency in financial services and beyond. Below is what it looks like – and how it benefits businesses and individuals – when using crypto to the right Path.
REAL BUSINESS IMPACT
Huge amounts of money move across the US and around the world every second to boost trade. Even small improvements to these processes can deliver huge cost savings and powerful new benefits as they scale – both for businesses and the customers they serve. Enable companies like Ripple real business to take advantage of these savings and benefits today.
Fact 1: Crypto can be used to make payments around the clock with no weekend and holiday breaks hindering the flow of standard funds.
Fact 2: Many prominent organizations like Microsoft, Visa, PayPal, Starbucks, UNICEF and more are already using crypto for payments.
Fact 3: Traditional financial services often involve many costly intermediaries – crypto services can be more direct to save consumers money and time.
Fact 4: Ripple’s payment technology uses XRP to enable companies to free up working capital that they can then invest in their growth.2
REAL COMPLIANCE SOLUTIONS
Did you know that crypto transactions are recorded in public ledgers? This provides transparency – which is often lacking in cash transactions – which is critical to proper oversight while protecting legitimate privacy interests. Ripple prioritizes its customers’ compliance efforts, including meeting anti-money laundering requirements and “know your customer” requirements, to achieve this real conformity Results.
Fact 1: Data related to crypto transactions is stored in public blockchains with information accessible to all for high performance transparency.
Fact 2: While some bad actors are using crypto for illegitimate purposes, as we’ve seen with cash, this improper use of crypto is very minor.3
Fact 3: For banks and regulators, the blockchains that power cryptocurrencies can actually streamline and improve regulatory processes.4th
Fact 4: Ripple’s solution helps its customers meet compliance requirements in the US and around the world.
Sustainability is a global priority that must be driven by smart thinking and immediate action. While some cryptocurrencies use large amounts of energy, many, including the XRP cryptocurrency, use an entirely different approach. Since sustainability was a priority in the creation and design, XRP uses very little energy and is up to 61,000 times more energy efficient than some other assets. The truth is, cryptocurrencies can and do achieve something real sustainability, and many of the companies that use crypto care deeply about the problem.
Fact 1: Cryptocurrencies can actually be more sustainable than cash and use much less energy than their cash equivalents.5
Fact 2: XRP is a cryptocurrency powered by the world’s first large, global, climate-neutral blockchain.6th
Fact 3: There is broad commitment from the crypto industry to the goal of making the crypto industry 100% renewable.7th
Fact 4: Ripple is committed to being a sustainable company and is implementing a plan to be carbon neutral by 2030.8th
From increasing access to financial services for the under-banks to opening up new business opportunities, crypto is already removing barriers and now making possible what was previously impossible. We have only just begun to develop its innovation potential. While it is a global technology, it is also a driver that is keeping America at the forefront of financial services innovation today. the real innovations are just getting started.
Fact 1: Crypto can help bring US citizens with and without bank details into the financial system for access to basic financial services.9
Fact 2: Crypto enables workers to be paid daily or even as needed, and this can help them overcome reliance on payday loans.
Fact 3: Crypto offers new ways to do business, such as creators receiving micropayments for a single item or song.
Fact 4: Ripple’s payment technology uses XRP to dramatically speed up cross-border payments – transactions that took days are now done in seconds.
WHAT NEXT: A CALL FOR CLEAR REGULATIONS
Ripple, like many who work with cryptocurrencies in the US and around the world, welcomes clear regulatory guidelines that protect businesses and individuals while supporting the next wave of American innovation. Clear government guidelines that produce predictable results will help this innovation flourish in the US, delivering significant benefits to businesses and consumers. There was a time when some lawmakers questioned the value of the internet, but as a group they created a framework that protected businesses and consumers while allowing the technology to succeed in the United States. That time is now for crypto. We invite policymakers and regulators to do the same now. Let’s get together and discuss the best way to go for cryptocurrencies.
Visit our Policy Hub and download the datasheets to learn more.
Notes and sources
- The US Consumer Financial Protection Bureau highlighted Ripple’s software solution for the fee-based transparency it offers consumers: Transfers under the Electronic Fund Transfer Act (Regulation E)
- Organizations that send money across borders are often required to maintain “prefunding accounts” around the world that hold local currencies to anticipate transaction processing needs. Because Ripple’s solution can provide XRP on demand to aid with settlement, customers can reduce or eliminate those prefunding accounts and pass the associated savings on to their customers and / or use that money for their business.
- The 2021 crypto crime report
- When Crypto Meets Compliance: Is Blockchain Ready For Business?
- Measuring the environmental impact of cryptocurrencies
- XRP Ledger Foundation, Ripple and Energy Web announce the world’s first decarbonized blockchain
- Crypto climate agreement
- Ripple leads to carbon neutrality by 2030
- Cryptocurrencies are democratizing the financial world