Could we finally have an answer to the question on all of our minds? In a recent revelation, prominent digital asset researcher, Anders, sheds light on the SEC’s choice to pursue legal action against XRP.
Back in December 2020, the Securities and Exchange Commission (SEC) threw the cryptocurrency community into disarray when it initiated a lawsuit against Ripple. The crux of the SEC’s argument was that Ripple had marketed XRP as an investment without adhering to the proper regulations. This move surprised and confused many people.
The Curiosity is Growing
When this happened, the crypto world, especially XRP enthusiasts, began to speculate about the underlying motivations behind the SEC’s actions. Attorney John Deaton, the founder of Crypto-Law, recently sparked a series of questions surrounding the SEC’s choice to target XRP.
Anders Weighs in
In response to Deaton’s inquiry, Anders provided some crucial insights into the matter.
A key rationale behind the SEC’s focus on XRP lies in how Ripple utilizes the digital asset for international payments. According to Anders, Ripple’s approach to using XRP is causing significant disruptions in the traditional banking system, particularly in the area of “nostro/vostro accounts.” These accounts have long been a source of profit for major financial institutions.
Anders even shared a picture that shows how much money is made from international payments. Just the business-to-business (B2B) payments alone bring in more than $240 billion from transactions worth an incredible $135 trillion.
Ripple’s Innovative Approach
Ripple Labs is focused on making international payments more accessible, and they use XRP to do it. This helps eliminate the middlemen, meaning payments happen faster and cost less.
Many businesses and banks have started using Ripple’s solutions, like On-Demand Liquidity (ODL). For example, Tranglo, a payments company in Malaysia, used ODL to process nearly $1 billion in transactions. Their ODL transactions went up by 1,729%, from $52 million to $970 million.
Ripple’s creative way of using XRP for international payments seems to be why regulators are paying attention.
