Is XRP a currency after all?

XRP is the name of Ripple’s coin which is both a cryptocurrency and a digital payment network which facilitates financial transactions. However, there has been a conflict on whether XRP should be considered as a currency or as a security. It is noted that once XRP is determined to fall within the category of securities, it falls within the scope and supervision of SEC with all the regulatory consequences this entails.

Although this matter has become the subject of heated debate, SEC has not come to a conclusion and has not provided a definite answer. Although Ripple’s lawyers maintain that it is indeed a currency and not a security, the public does not seem to sympathize with this view.

Preston Byrne, an attorney and solicitor, has recently published a poll on his social medias to put the public in the position of considering to what extent has XRP been used for the purchase of goods and services, by supposedly being a currency and leaving hints that it has indeed, not. The results of the poll show that 68% of the respondents have never used it to buy anything, while only 32% supported that they have.

As expected, the poll caused a lot of controversies, as the dedicated fans of XRP reacted in the question set by the attorney. Comments which maintain that it is indeed currency support that currency can be either fiat or tied to an underlying asset and that in this case, it is digital and that it doesn’t have to be spent on something to be considered as being a currency.

On the contrary, statements against XRP being a currency, support that it is actually a scam or even an illegal security and that a lot of people who have used it have actually been harmed.

Regardless of the debate, no clear-cut answer has been provided yet. Jake Chervinsky, a legal practitioner stated that the ruling of this conflict should not be expected to happen in 2019. The crypto community thus awaits for the results and the decision on the labelling of XRP.

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Published on: 25/09/19