What is the XRP/EUR pair?
The XRP/EUR (ripple-to-euro or “XRP to eur”) pair is composed of the crypto network Ripple’s native cryptocurrency XRP and the European Union’s currency euro.
Ripple’s cryptocurrency is represented by the ticker XRP, while the euro is denoted by EUR. This modern pair represents the value of the cryptocurrency compared to a real-world (fiat) currency, essentially how much XRP is worth when measured against the EUR.
Looking into Ripple
Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network. It is best known for its cryptocurrency the XRP, however, the network is also used by a number of financial institutions around the world.
The initial concept for Ripple was developed in 2004 by Ryan Fugger, who wanted to create a decentralised payment system. The next year, 2005, RipplePay, an initial version of Ripple, was released but did not prove an immediate success.
In 2011, Jeb McCaleb began to develop his own cryptocurrency based on value by consensus, rather than mining like Bitcoin. The following year a company known as OpenCoin was created after Fugger handed over control of the original version of Ripple to McCaleb and his partner Chris Larsen.
After gaining $2.5 million in funding in 2013, OpenCoin renamed itself to Ripple Labs, Inc. and released Ripple. In 2014, Ripple protocol was adopted by the German Fidor Bank, setting a precedent for the crypto network’s use by a financial institution.
All about the euro
The euro is the official currency of the European Union (EU), used by 19 of its 28 member countries, known as the Eurozone. Denoted by the symbol €, the currency was introduced on January 1, 1999, under the management of the European Central Bank (ECB).
However, it was not until three years later, in 2002, that the currency’s banknotes and coins became commonly used across Europe.
What influences the pair?
One key influence on the XRP/EUR price is news relating to both currencies. Although the euro is well-established, it is still affected by news about unemployment rates and other macroeconomic EU data. For up to date news, keep an eye out for monetary reports and other press releases by the European Central Bank (ECB).
XRP, as a cryptocurrency, finds itself at a disadvantage because of its novelty as a technology. As legislators start paying more attention to the crypto scene, new regulations may go some way to raising XRP’s legitimacy, but they will also introduce restrictions to the network.