XRP, a cryptocurrency Ripple uses on its payments network, rose to a five-week high on Wednesday after the company said it targets the $ 1.8 billion Philippine remittance corridor.
The cryptocurrency changed hands at $ 0.74 during the European hours, its highest level since Jan.
Buyers jumped around $ 0.65 after Ripple announced that Japan’s money transfer provider SBI Remit, Filipino mobile payment service Coins.ph, and crypto exchange SBI VC Trade have teamed up to use wire transfers from Japan to the Philippines Ripple’s On Demand Liquidity (ODL) service.
Filipinos based in Japan send nearly $ 2 billion to their home country every year. It’s a costly proposition, according to Ripple as Japan has one of the highest transfer costs in the world. “That’s almost twice the average for all G-8 countries,” noted Ripple.
Using Ripple’s cross-border payment service xRapid, ODL enables customers to transfer funds using XRP, making transactions relatively faster and cheaper.
“This is Ripple’s first implementation of On-Demand Liquidity (ODL) services in Japan, which creates the conditions for greater adoption of crypto-enabled services in the region,” said Ripple. “By using the digital asset XRP to eliminate pre-financing, the two companies can also free up capital and accelerate the expansion of their own payments business.”
The news follows a longstanding battle between Ripple and the US Securities and Exchange Commission that weighed heavily on XRP late last year.
In December, the SEC filed a lawsuit against Ripple for raising $ 1.3 billion through the sale of XRP in unregistered securities offerings. XRP fell 67% to $ 0.21 in December before rising to $ 1.9 in April this year amid the broader market bull market. However, when Bitcoin took a big hit in May, it also disrupted the bull run on XRP and other coins. XRP recently hit lows near $ 0.50.
Bitcoin is trading over $ 40,000 at press time, up 1.72% from the day. Sentiment has recently turned in the bulls’ favor, with some investors calling or bullish betting in anticipation of another uptrend. Stronger gains could be envisaged as the Federal Reserve (Fed) is unlikely to heighten concerns about an early rollback or curtailment of its stimulus plan later in the day.
“Policymakers are likely to continue warning of the recent spike in US inflation, which jumped to new multi-year highs last month,” said Matt Ryan, a senior market analyst at Ebury. “The committee is also likely to highlight the downside risks to growth from the recent wave of viral infections triggered by the aggressive spread of the Delta variant.”
Ryan sees no formal announcement to reduce quantitative easing until the September meeting, when new macro and interest rate forecasts are released. Bitcoin is likely to come under selling pressure if the Fed’s monetary policy statement drops evidence of an early throttling.