Is CoinBase New Remittance Service a Subtle Advert for Ripple (XRP) and xRapid?
CoinBase, one of the largest
cryptocurrency exchanges in the world has started offering global remittance
service with XRP and USDC, a move that could be considered as an advert for
xRapid and its underlying crypto.
CoinBase Launches Free International Remittance With XRP
The US-Based exchange announced a few days ago that it now allows its users to send money internationally for free using XRP and USDC. The company stated that there are no fees involved when users transfer these cryptocurrencies to each other in all parts of the globe.
In a blog post, CoinBase said that “one now send money to any user with a CoinBase account around the world using XRP or USDC. By using cryptocurrencies that are optimized for cross-border transmission, you can send and receive money virtually instantly by sending those cryptocurrencies and having the recipient convert them into local currency. There’s zero fees for sending to other CoinBase users and a nominal on-chain network fee for sending outside of CoinBase.”
The XRP community welcomed this latest development with enthusiasm as there is a belief
that the service could help the cryptocurrency gain massive adoption. The users
of CoinBase in supported countries including Mexico, the Philippine, and India
would get to make use of this service instantly while other countries would
have to transfer their funds to other exchanges to enable easier conversion.
Even though CoinBase did not state
the remittance tool it would make use of; there is a high possibility it is
xRapid. This remittance tool by Ripple makes use of XRP to settle cross-border
transactions in a fast and efficient manner, while also lowering the costs
CoinBase Could Be Bullish On XRP
By making use of the XRP and possibly
xRapid, the chances are high that CoinBase is very optimistic about the
cryptocurrency. This latest development comes just a month after XRP was added
to the CoinBase cryptocurrency exchange.
There are some within the crypto
space who believe that the latest move by CoinBase is a form of an advert for
Ripple and its products. According to C3|Nik, a cryptocurrency researcher on Twitter, the promotion of XRP by CoinBase
makes sense considering the fact that the crypto exchange is backed by investors
who only have money in mind. For CoinBase, it is all about the money and XRP
and its technologies allows them to transfer funds across the globe in
real-time, and this is something that could bring more users to their platform.
Some crypto enthusiasts did find it
strange that CoinBase chose to endorse XRP and not the other cryptocurrencies.
The researcher stated that “CoinBase did not endorse the buggy Lightning network or the slow
and expensive on-chain #Bitcoin #BTC transactions for cross-border flows. They
endorsed #Ripple #XRP instead.”
While some people are surprised by
the CoinBase promotion of XRP and hoped it was an April Fool’s joke, some
believe that things change in the cryptocurrency world as long as there is a
mutually beneficial relationship to be explored.
CoinBase XRP service is available
mostly in Asia and Mexico, and it is expected to face some stiff competition in
that area. On April 1, the same day as CoinBase announcement, Vianex, a
platform powered by Viamericas, revealed that it is offering thousands of
convenient cash payout locations throughout Mexico, Central and South America,
the Philippines and India. This development is an interesting one because
Viamericas makes use of xRapid and is a Ripple partner.