Why Ripple Representatives Believe That Coinbase Should Add Support Of XRP
XRP is the third most expensive cryptocurrency in the world, that in recent months started rumors that the American crypto exchange Coinbase will begin trading these tokens. While this is just a conversation, on June 22, the head of Ripple Brad Garlinghouse for the first time publicly spoke on why the exchange should take a positive decision.
Now Coinbase allows customers to trade such crypto actives as Bitcoins, Ethereum, Litecoinand Bitcoin Cash, and is going to add Ethereum Classic soon, according last week announcement. However, at its website there is still no XRP - a token with market capitalization of $ 21 billion. According to rumors, Ripple, owning more than half of the XRP tokens, tried to pay Coinbase $ 1 million for inclusion of the coin in the listing.
Ripple sells its blockchain solution to financial institutions around the world. Some of them using XRP increase the speed and reduce the cost of cross-border payments. Representatives of the company believe that the price of XRP is likely to grow in proportion to the popularity of this token in the banking.
On June 22, Garlinghouse, who participated in Future of Financial Technologies, gave an interview to Fortune magazine, in which he said:
"I think when we solve the problem of scaling and make the token available to large financial institutions, Coinbase will be interested in it."
This year, the price of XRP ranged from $0,50 to about $ 4 in January, amid a flurry of rumors that Coinbase is about to add this cryptocurrency. However, in March, Coinbase refuted such speculation, saying that it intends to trade only with cryptocurrencies recognized by regulators as non-securities.
Perhaps it is the main reason why Coinbase and other American crytpoexchanges are in no hurry to trade XRP. Last week, the US Securities and Exchange Commission (SEC) stated that the ethereum was not security due to its decentralized nature. This statement of the regulator raised concerns that XRP may include to the category of securities.
However, according to Garlinghouse, XRP can not get into the jurisdiction of the SEC. At a conference in New York, he remarked:
"I think everyone is absolutely clear that XRP is not a security."
He explained that the XRP blockchain exists independently of Ripple and will continue to function even in the event of a company crash; moreover, XRP tokens have a technological purpose (they ensure the execution of transactions), whereas traditional securities like shares do not have such a function. In addition, according to him, XRP does not give its owners the opportunity to have shares in the company itself in these tokens:
"I do not think that holding of XRP gives us control. The Saudis own a large amount of oil, but this does not give them control over oil as such."
Garlinghouse stressed that it does not affect Coinbase's plans and does not take decisions for it. He refused to predict when XRP could include other major US exchanges: Circle, itBit, Cash app, owned by Square, and Robinhood. (Now in the US, only Kraken supports a XRP/USD and not in all states.)
Most likely, the cryptocurrency exchanges are in no hurry with the XRP trade, waiting for the regulator's decision regarding the status of the token. Last week, the New York state regulator allowed it to include the Stellar tokens, created by Ripple co-founder Jed McCaleb, on the list, but the exchange had not yet applied for permission to trade XRP.