Ripple update: Question: What is the XRP token used for?
I understand Ripple is partnering with Institutions to transfer money but what purpose is XRP the currency?
When a bank makes a transfer on Ripple are they sending XRP with the value pegged to the dollar? How does it work?
Why not just create a ERC-20 like token on a smart contract and the bank digitize their USD vaults?
Also, blockchain creates an open financial system without permission so why use the bank and pay them 3rd party fees when you can just use the blockchain?
Decentralized stable coins already exist like Dai and Digix Gold. Why more middle man?
That defeats the entire purpose of blockchain. If you still wanna trust the banks and pay the fees just use a data base.
I am not fudding just honest questions from a guy who does not understand the value of XRP.
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
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