💬Today we will do
A brief Q&A dialogue about XRP to understand the purpose of the currency and its features
Question 1: What is the primary purpose of XRP? Is it like Bitcoin?
Answer: The primary purpose of XRP is not to be a currency for the average consumer, but it is designed to be a bridge for liquidity and cross-border money transfers between banks and financial institutions, as an alternative to the slow and costly SWIFT system.
Question 2: What is the main technical feature that XRP offers to these institutions?
Answer: It is speed and cost. The XRP network (developed by Ripple) uses a distributed ledger (XRP Ledger) that can settle transactions in a matter of seconds and at minimal fees, allowing banks to transfer currencies internationally instantaneously.
Question 3: What is the biggest challenge that XRP has faced in recent years?
Answer: The biggest challenge was the legal issue with the U.S. Securities and Exchange Commission (SEC). The agency accused Ripple of selling XRP as "unregistered securities," which created uncertainty in the market regarding the trading of the currency.
