Ripple, the third largest cryptocurrency by market capitalisation, is forecast to “convert the remaining crypto cynics,” according to Nigel Green, the CEO of deVere Group.
Green’s prediction comes as Ripple (XRP) experienced a spike last week, adding another $62bn to its market value.
XRP, an open-source technology built on the principles of blockchain, offers banks and payment providers an option to source liquidity for cross-border payments.
Green, whose global financial advisory firm launched a crypto exchange app, deVere Crypto, this year, noted that Ripple has also recently broken some key resistance, such as $0.6500 and $0.6600, nudging it towards the important $0.7000 level against the US dollar.
He commented: “After the cryptocurrency market somewhat overheated at the end of 2017 – thanks largely to investors piling in, pushing Bitcoin to an all-time high of more than $19,000 – there was a major, natural price correction in the first quarter of this year of most of the major cryptocurrencies.
“But the cryptocurrency market is, once again, now looking already significantly more bullish than it did in quarter 1.”
He added: “This latest upward crypto market trajectory can be attributed to the fact that institutional and retail investors are increasingly appreciating the fundamentals, such as the need and demand for digital currencies in a digitalised, tech-driven age.
“Also there is now huge awareness that blockchain, the technology that underpins the likes of Bitcoin and Ripple, is likely to be the world’s next major disruptive technology.”
In Green’s view cryptocurrencies are now “really coming into the mainstream”.
And while he acknowledged there are still some critics of the crypto revolution, he believes Ripple (XRP) can be expected to convert the remaining crypto cynics.
“This is primarily due to Ripple’s apparent emphasis on integrating with banks and other financial institutions,” said Green.
“For instance, banking giant Santander has recently launched a foreign exchange service that uses blockchain technology developed by Ripple to make same-day international money transfers. It is also reported to be in talks with other major global banks and money transfer groups to develop similar products.”
He also stressed that cryptocurrencies remain highly determined by market sentiment”, and caution must be exercised and professional advice should be sought.
Green’s predictions come as Ryan Zagone, head of regulatory relations at the transactions innovator and digital currency, has reportedly called on UK regulators to strike a balance between “capturing risk and enabling innovation”.
He highlighted three “pillars” for lawmakers to target in regulation: consumer protection, anti-money laundering and financial stability.
Zagone told The Daily Telegraph that Japan overhauled its rules on Bitcoin last year, introducing legislation to protect consumers and forcing cryptocurrency exchanges to comply with anti-money laundering regulation.
But revamping rules to include new crypto-assets has been slower moving in the UK.
Zagone said that Japan had been a “leader” and could be used as a blueprint for other nations including Britain. He said a taskforce launched by UK Chancellor Philip Hammond unveiled in March 2018 – to help safeguard consumers and included representatives from the Treasury, the Bank of England and financial watchdog the FCA.taskforce – would help the UK “manage the risks around crypto-assets”.