Ripple is arguably the most divisive cryptocurrency. Earlier this year, the company surpassed a 200-customer milestone as financial institutions such as Transpaygo, WorldCom Finance, and Euro Exim Bank signed up for RippleNet. If Ripple was like any other cryptocurrency, enthusiasts would have celebrated this accomplishment. Except for the XRP Army, the company is not getting any love from the crypto community.
In this article, we explore the reasons why corporations love Ripple while almost everybody else hates it.
It is quite easy to understand why corporations love Ripple. By using XRP, corporations such as banks can remove the middleman out of the equation when sending cross-border payments. Without third-party involvement, costs are significantly reduced. For instance, PayPal charges around 3% for electronic payments. If you use Ripple, the average transaction fee is currently 0.0009 XRP, which is negligible considering that the price of one XRP is around $0.37.