Indeed, Ripple started the week with a package of good news, where it made a trade recovery move. This seems to continue, especially with the recent news where European Central Bank has accredited Ripple (XRP) among the best coins for usage. The bank recently released and published a report.
The report seek to cover the implication of crypto-assets to market structure, monetary policy, financial stability and most crucial market payments in terms of usage.
According to the bank report, Ripple’s XRP, Bitcoin, Ether, and Bitcoin Cash are the best coins for usage. The report outlines two reasons which contribute to Ripple being among the best coins for usage. These are;
Ripple is the third most used coin, after bitcoin and ether. According to the European Central Bank report, the most used coins are bitcoin, ether, and ripple and bitcoin cash in that order.
These are among the 1900 coins that exist ever since 7th April 2013. The great use of Ripple’s XRP just like Bitcoin has contributed to its importance in usage, business model diversity, and market capitalization.
Besides, Ripple does not pose any risk to the stability of financial systems in the euro area. According to the report, Ripple, just like other coins, are crypto-assets. These assets will collectively have a small value on the financial systems.
As a result, they will not pose significant risks such as instability to the financial systems. This makes Ripple and other coins free from posing any risks to the stability of financial systems in the euro market.
For this reasons, Ripple just like any other crypto-assets never fulfills the functions of money. Besides, it lacks a tangible impact to a specific country or global economy.
However, even if Ripple does not pose any significant risk to either a country’s or global economy, there European Central Bank advice the market to monitor it and other crypto-assets.
According to the report, a crypto-asset is a new type asset which is recorded through and in digital forms. Mainly, crypto-asset is enabled by cryptography.
The cryptography should not be representing either any financial claim or liability on any identifiable entity.