The major American exchange Coinbase announced its new cross-border cryptocurrency payment platform and said that it will use Ripple’s XRP and USDC to promote the feature. Questions have been raised as to why Coinbase chose to work with XRP and not Bitcoin (BTC), the leading cryptocurrency.
The important reason for using XRP rather than Bitcoin could be the fact that XRP is better than other crypto or could be due to people who questioned in recent times whether Ripple had paid for the exchange Coinbase to use its native crypto token. The reply for this one is simple, I think, and it is no! Ripple has not paid Coinbase to use the token.
The process allows for transferring the funds to any country and should be supported by Coinbase. It will use the XRP token and USD coin (USDC). The recipients do not need to convert the XRP and USD into local currency.
One thing is for sure: cryptocurrencies are evolving rapidly. What this means is that each and every cryptocurrency is working towards making the world a better place by offering services in specific fields. The news is not a secret anymore that Ripple (XRP) has selected payment services as an opportunity and Coinbase selecting it for its cross-border payment token shouldn’t be a shock.
Weiss Ratings, not a good fan of Ripple, once reported that Ripple is excellent in terms of speed and quality of remittance services, and nobody can take it away from the company. This was just a symbol that XRP has created its identity in the industry, and that cannot be denied.
Bitcoin is costly and takes a lot of time to settle payments. Mining a block of Bitcoin takes 10 minutes, and this is a long time for the merchant who needs to wait to receive or send funds. However, this does not mean that Bitcoin is valued less than its worth.
Earlier, Tron CEO Justin Sun mentioned in an interview with CNBC that Bitcoin is an outstanding investment; layer 2 of the Bitcoin protocol is what makes the internet a revolution. Sun is not part of any known crypto project apart from Tron, and his view on Bitcoin is an honest one.
Ripple offers one of the fastest remittance services at a small, almost negligible cost. This is why it is a preferred platform for payments rather than Bitcoin.
Recently, Bitcoin received an ‘A’ rating level along with Ripple’s XRP, which is based on the ranking of Weiss rating for various strengths. XRP received an ‘A’ rating for its effective cross-border payments, and Bitcoin received an ‘A’ rating for a store of value. All cryptocurrencies have their own strengths, and one is not more important than another.
The Coinbase choice of using XRP does not specify that XRP is superior to Bitcoin or that XRP is the standard. Instead, payments are XRP’s powerful suit and should be used in these areas to make life better, which is the aim of blockchain technology.