What is the XRP/USD pair?
The XRP/USD pair is a crypto-fiat currency pair with XRP as a base currency and USD as the counter currency. USD is one of the world’s major currencies, backed by the US government. XRP is the name of and ticker symbol for Ripple’s native cryptocurrency. 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 USD.
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 has found its usage in a number of worldwide financial institutions.
The initial concept 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 hands 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 renames itself to Ripple Labs, Inc. and releases Ripple. In 2014, Ripple protocol is adopted by Fidor Bank, a German bank setting a precedent for the crypto network’s usage.
In 2015, Ripple received $4 million in funding from Santander, and in the same year a number of other large banking organisations start to adopt Ripple. The crypto network’s users include UniCredit, mercury fx LianLianPay, RakBank, transferGo and many others.
By 2017, the company had a market cap of $10 billion. XRP is rated as one of the world’s top-performing cryptocurrencies, boasting a rise of 35,500% in 2017. March 2018 saw the network become the 3rd largest cryptocurrency by market cap.
The network has a number of key advantages over other cryptocurrencies, for example, it settles transactions in 4 seconds, compared with Bitcoin’s 1+ hours or Ethereum’s 2+ minutes.
A brief history of the US dollar
One of the world’s most influential currencies, the US dollar dates its history back to Joachimstal, now modern-day Germany. In the town, silver ‘thalers’ were minted, each with a standardised weight – 29.2 g. These coins were widely used across the European continent and eventually found its way to the New World – America.
Following the American Revolution, in 1972 the newly formed US Congress instated the ‘thaler’ as the official currency, although at a slightly lighter weight – 27.0 g. This was done as a method of standardisation, following the corrupt ‘continental bill’ system.
Although still closely tied to the price of silver and gold, the US dollar has developed as a currency spawning a multitude of coins and notes. Today, the currency is controlled by the Federal Reserve, the central bank of the United States, established in 1913.
The USD is the world’s foremost reserve currency, held by numerous countries as part of their foreign exchange reserves. It also makes up six out of eight of the world’s Forex pairs. The US dollar is denoted by the symbol $.
What influences the XRP/USD pair?
News about their of the particpants of this crypto-fiat pair could affect its rate. The dollar, whilst well-established, is subject to price changes based on the latest US news, including business, unemployment and political factors. While XRP is quite new and finds itself at a disadvantage due to the lack of regulations for cryptocurrencies. New regulations may go some way to raising its legitimacy but will also create restrictions for the network.
How can I trade XRP/USD?
Visit Capital.com and explore the XRP/USD charts. Get to know the latest XRP/USD share price data and speculate on this crypto-fiat pair.