SBI Ripple Asia, a joint venture between Ripple and SBI Holdings, will facilitate Cambodia’s first international remittance service. SBI Holdings will achieve this by collaborating with its subsidiary SBI LY Hour Bank to enable fund transfer between Vietnam and Cambodia.
The collaboration will also make the fund transfer process much faster, convenient and cheaper using the RippleNet, a distributed blockchain-powered payments network. RippleNet, a financial service by Ripple, utilizes XRP to facilitate real-time transactions between fiat and cryptocurrencies in a frictionless, efficient and convenient manner.
SBI’s CEO Yoshitaka Kitao released a statement on behalf of SBI Holding about the project:
“We will pursue synergies to the maximum in the future by generously providing new technologies such as distributed ledger technology (DLT) promoted by the SBI Group to companies inside and outside the group, especially in the rapidly developing Asian region. We would like to lead the globalization of finance utilizing cutting-edge technology, such as by leading to the development of a money transfer service that incorporates crypto assets.”
What does this partnership mean for Cambodia?
This partnership between SBI Holdings and Ripple to create SBI Ripple Asia will create a gateway between Vietnam and Cambodian banks. This will lower the fees for payments, and all the transactions will be registered on the blockchain in real-time.
SBI LY Hour Bank will be the first cross-border remittance corridor for Cambodia which will help the country with its financial difficulties and make the lives of millions of people a lot simpler.
SBI X Ripple
While Ripple faces scrutiny from the US Securities and Exchange Commission claiming XRP operates on unregulated security, SBI fully supports the platform. This partnership with SBI will rejuvenate Ripple following the allegations which severely affected the company.
MoneyGram, a reputable partner of Ripple, put a hold on its collaboration with the company. However, this partnership will promote XRP adoption in the Asia region regardless of the lawsuit Ripple is fighting in the US.
After the court case on Ripple is resolved, the company might go public, as expressed by both the CEOs of SBI Group and Ripple. Regardless of the ongoing case, this partnership will help Cambodia immensely and goes to prove another use case of blockchain technology.
The mining industry has been witnessing a lot of correctional transitions especially when the sphere of its market is growing in up to now unknown territories. Recently Ripple SBI Asia head honcho spoke about how the mining industry will see the hash rate migration from east to west as indications of the same have already started to show.
Adam Traidman was positive when he implied that there was a group of Chinese miners who were interested and were paying anywhere between $0.03 to $0.05 per kilowatt-hour. The texas rate was low at $0.025 and below. Traidman stated that the relationship between Texas and firms overseas has not been the steadiest due to earlier business failures. There is a bit of ambiguity here but when more money is infused things will see north as it has always.
Traidman also highlighted that the tariffs imposed by the Trump government on China have also been one of the reasons for the slowing down. But once these tariffs have been lifted, there will be a huge growth almost immediately which is encouraging. The entourage of hash rate migrations from east to west has been the case as many of the big mining hardware providers are located in China. More than 90% of the shipments still belong to China.
He also noted that Europe had attracted and did their best in tempting the top companies of the mining industry but the operating costs have been high enough to prevent them to enter the region. The power rates in Europe are relatively higher compared to that of America.
Traidman also gave another perspective on high operating costs in Europe. He said that the overtly inflated operating costs could also be that the nations do not want the sector to invade its region too much. There could be many jurisdictions that are protesting because they are usually not efficient and eco-friendly which would ultimately have long-term repercussions.
With a continuous migration being witnessed from east to west, as also noted by the head of Ripple SBI Asia head, the tension between the USA and Chinese firms is yet to tackled and countered.
The fifth-largest bank in the world, in terms of total assets, and noted to being one of the most influential private banks – Mitsubishi UFJ announced it’s entry into the Cryptocurrency space.
Japan Times highlighted the president of the Mitsubishi UFJ Kantsugu Mike, noting that Mitsubishi will launch its own Cryptocurrency called ‘coin.’ The announcement is part of the bank’s initiative of technological improvement aimed at increasing confidence, security, and efficiency in the organization.
Banks Bending towards Cryptocurrency
The latest trend between banks and digital currencies are Central Bank Digital Currencies also known as CBDC’s. CBDCs can be defined as the digital form of a fiat currency of a particular nation issued and regulated by the monetary authority of the country.
Mitsubishi UFJ follows the footsteps of banking giants such as JPMorgan developing its own token called JPM Coin. JPM Coin’s primary use case is for r settling more than $6 trillion worth of daily payments between clients.
Mitsubishi UFJ’s Cryptocurrency History
September 2018 marked the Coin test run at an employee only successful convenience store. Thus ensuring that Coin could be the way forward not only for the Japanese bank but Japan as a whole.
Another advantage is that the Japanese bank already makes use of Ripple to process transactions.
Steven Diep tweeted on September 3rd, 2018 about Ripple’s advantage over SWIFT.
Along with this Mitsubishi UFG owns three-quarters of the fifth largest bank in Thailand Krungsri Bank which also utilizes Ripple.
Coin is said to roll out before the end of 2019 and could help change the overall impact of how the Japanese perceive digital currency. With the Tokyo Olympics next year, the country could become a freer place for tourists and locals to spend lavishly through Cryptocurrency.
According to CRYPTIMI, a media product that caters to the ever-growing crypto and blockchain world, the Japan-based financial giant, Strategic Business Innovator (SBI) Holdings announced that customers of its new crypto exchange VC Trade will be able to trade virtual currencies come March 2019.
Despite the fact that VC Trade is a startup exchange platform, the SBI Group already serves a customer base of 23.47 million people, all of whom will have access to the new exchange. SBI clients are already able to make deposits as well as withdrawals of Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP). Additionally, SBI CEO Yoshitaka Kitao announced the exchange will be supporting Bitcoin Cash (BCH) when it launches.
Japan adoption continues apace
In a recent tweet, Kitao said; “SBI Virtual currency Exchange VC Trade, Exchange-style cryptocurrency trading available from March-now you can buy and sell XRP, BTC, ETH, BCH in the Sales office format from the virtual currency.’’ Before this, withdrawals were restricted and users only had the option of using a ‘designated wallet’.
The financial service headquartered in Tokyo, released a document on its website recently stating that they are ready to roll out crypto services and onboard users from their 23.47 million customer base. According to the document,
“At the launch of full-scale services, expecting customer inflow from the SBI Group’s customer base of 23.47 million, specifically, SBI SECURITIES with approx. 4.26 million accounts, SBI Sumishin Net Bank with approx. 3.21 million accounts, and SBI Liquidity Market including SBI FXTRADE, with approx. 1.05 million accounts.”
SBI and Ripple Partnership
Ripple is a U.S based company that aims to disrupt the banking and financial sectors through its blockchain based payment solutions. The platform has over 200 partnerships with various banks and financial players across the globe. Also, Ripple is leveraging its proprietary products like xVia, xCurrent, and xRapid to process payments in a fast, secure and transparent way compared to traditional methods.
The merger between the two companies led to the establishment of a joint venture called the SBI Ripple Asia Co., Ltd. The main goal towards this is so as to provide a next generation payment platform powered by the distribute ledger technology, to financial institutions and payment transfer providers in Asia.
“XRP is faster, cheaper and more scalable than any other digital asset. I strongly believe it will become the global standard in digital currencies.” –A statement from the SBI Group’s CEO, Kitao.
One of the most popular financial assets to invest in right now is cryptocurrency. These assets are created with blockchain technology that more or less serves the same purpose as traditional money including purchasing items. Like foreign exchange, crypto coins can also be traded for other currencies for profit.
While there are some critiques about its stability, theres no doubt that many financial institutions are slowly warming up to the idea of trading crypto coins with security assets and regulations already in the works of various governments and financial institutions. Cryptocurrency investing is really something that traders all around the world are considering.
To start a probable career, heres a guide on cryptocurrency investing for beginners:
What is Cryptocurrency?
Cryptocurrency or crypto coins are digital coins that serve the same function as traditional money which can be used to purchase items and other assets. However, unlike traditional coins, crypto coins dont have a physical form and instead are run by blockchain technology.
Blockchain is like a digital ledger where it comprises of the coins entire history including its transactions from the very beginning.
When it comes to storing your cryptocurrency, you would also need a wallet much like your own local currency. However, crypto coins are different from traditional money because its decentralized, which means that no single authority is responsible for its circulation. Its unregulated and decentralized nature contributes to its volatile and fluctuating value, but it also means that its open for everyone to invest into.
What are the different kinds of cryptocurrency?
According to Coin Market Cap, theres at least 2,125 crypto coins currently available in the market. However, not all crypto coins are the same since certain types are more in demand than others. To start, heres a list of the most commonly traded crypto coins today:
1. Bitcoin (BTC)
Bitcoin or BTC is considered as the original cryptocurrency, Bitcoin uses blockchain technology to make transparent transactions between parties. While theyre easily accessible, their features are also secured by an added algorithm which prevents malicious hackers from destroying the blockchain feature.
Bitcoin is considered to be the predecessor of all other cryptocurrencies, which is why the other crypto coins are called altcoins or alternative coins. Basically, these are alternative currencies to Bitcoin; however, these altcoins arent inferior in terms of blockchain technology and usability or function.
2. Litecoin (LTC)
Litecoin or LTC is an alternative of BTC which includes starking differences in features. Some of which include:
Faster transaction speed
An 84 million limit
A different algorithm called scrypt
3. Ethereum (ETH)
Ethereum or ETH are digital coins primarily focusing on running and validating the programming code of any decentralized application, allowing it to be used in paying fees and other services on its own network. Ethereum is the most commonly used coin when dealing with ICOs or Initial Coin Offerings because its blockchain technology allows the use of smart contracts.
4. Ripple (XRP)
Ripple or XRP is a unique hybrid that is both a cryptocoin and a payment network for various institutions. They allow any currency to be exchanged which can range from USD, EUR, and even gold to connect to banks. However, unlike other crypto coins, Ripple doesnt focus on peer-to-peer sharing but instead on moving sums of money to a larger institution.
Each of which share similar decentralized nature but have different components for several purposes.
How do I start investing in cryptocurrency?
After deciding on which cryptocurrency you should start dealing with as well as researching on the different investments you want to make. Here are the steps you need to start:
1. Start exchanging from platforms where you can buy crypto coins
Depending on the country you’re from, there are various sites that allow you to purchase Bitcoin, Ethereum, and other digital coins. Before starting, make sure its legal in your country since certain governments are still wary of trading crypto coins. If you can’t find sites that sell cryptocoins, consider peer-to-peer platforms like:
Some Forex platforms also allow cryptocurrency trading so be on the lookout for those, as well.
2. Secure your coins in your cryptocurrency wallet
A cryptocurrency wallet is software that allows you to store your digital coins. Certain wallets also contain features like advanced security, key generation and easy transfer. Like cryptocurrency, digital coin wallets also come in different categories such as:
Software wallets – these are downloadable programs that are required to be installed in your computer or device.
Desktop – desktop wallets are software wallets that allow you to store your crypto coins in your laptop or computer. Certain wallets may contain online features although most desktop wallets dont.
Online – online wallets are cloud software wallets that require internet connection so you can access your account as well as make various online transactions.
Mobile – these wallets are downloadable mobile apps that allow you to check your balance and other transactions on your phone everywhere you go.
Hardware wallets – unlike software wallets, hardware wallets are physical storage devices used to store some of your keys. Theyre versatile and can be connected online although many are often used to keep investments away for a long time.
Paper wallets – are offline software that allows users to store their keys, generate copies, as well as store their cryptocurrency addresses on paper.
Each wallet serves a specific purpose depending on the investment you intend to do. The wallets also vary in price, functionality and security. The more you use your cryptocurrencies, the hotter your wallet should be. If you prioritize security and long-term use above all else, invest in a durable hardware wallet.
Cryptocurrencies are considered a hot investment item because they possess the convenience of todays technological innovation. With so many options available, many investors can expand their portfolio by choosing more than one kind of coin. To avoid risks, investors should also invest in security items to keep their assets safe.