Bitcoin has faced a tumultuous time this past year, as has been the story for nearly every other cryptocurrency on the market.
Despite the wave of bad press, major fintech players like Barclays, MIT, and Mastercard have hurled some funds into SendFriend, an XRP-based remittance company.
This recent move highlights a doublespeak and shows that many industry followers can quickly spot the ambivalence of institutional stakeholders. Banks and payment processors across the globe under the umbrella of the Bank for International Settlements (BIS) have downplayed the prospects of cryptocurrencies for some time. Why, then, the about-turn by these big names?
#XRP remittance firm #SendFriend is on fire in seed funding from #MasterCard and #Barclays, #MIT. On one hand MasterCard and Barclays bash crypto, and on the other, they throw piles of money at it. #FollowTheMoney #Adoption
— Weiss Ratings (@WeissRatings) February 13, 2019
A Case of Self-Interest
There very few financial institutions as well-known as Mastercard or Barclays. These are organizations controlled by boards which are made up of people who live in the real world. In a sense, every business acts to protect its self-interests. In this case, these institutions are protecting their interests by investing in a company that they feel points to the future of the world.
XRP currently trades about 500 million USD daily. Given that SWIFT processes $5 trillion in daily transactions, and PayPal around $315 million, there is enough room for considerable growth in the market share. This perspective explains why institutional investors do not overlook these kinds of opportunities.
Despite the Negative Press
In the marketplace of global opportunities, corridor chatter cannot replace hard facts. In this sense, consider that cryptocurrencies replace one-fifth of the daily volume of SWIFT, amounting to $1 trillion daily volume. Flowing from this, the window to grow the market share is open for Mastercard, Barclays as well as other early investors.
In situating the campaign against cryptocurrencies, it is clear that many people make their contributions from a selfish point of view. Protecting their businesses, future growth, and profitability are the major factors influencing their speech.
What Lies Ahead
Looking ahead, there are growing signs that cryptocurrency adoption will continue to gain strength across the globe. At present, one in 10 people already uses at least one type of cryptocurrency — according to a Kaspersky lab survey.
With the looming prospects of XRP becoming a leading global remittance facilitator, the big names in Fintech might just have started another big race to secure a foothold. Let us know your thoughts on the subject, below!
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