Despite not being Sharia-compliant, Ripple (XRP) could edge over Stellar (XLM) in the Middle East.
In the wake of 2009 many governments saw a serious threat in the event of crypto-related activities taking place in their countries. Banks and other financial houses had been quick to add their voice to the discussion, distancing themselves from crypto trades.
Despite these backdrops, crypto coins such as Ripple (XRP) considered such actions stepping stones to success. Recent months had proved this notion right and the coin is set to gain entrance to a hitherto blacklisted environment.
Ripple (XRP) has a high-profile in the crypto community and though many are wary of it, there are keen investors who believe the best is yet to come. At a time when other coins seem to be lagging, Ripple (XRP) has stopped at nothing in its drive to be more widely adopted.
The fight for the soul of decentralized payments seemed to be left for the coin and its crypto-rival Stellar (XLM). Analysts are of the opinion that the latter is more viable and has unique features that opens doors to its adoption around the globe. The notion was proven true when Stellar (XLM) got approval to ply trade in the Middle East.
It is pertinent to note that both coins were fighting for control over same market. The global cross-border payments previously under firm control of platforms such as SWIFT, VISA and MoneyGram had most of the market.
Ripple (XRP) brought up the decentralized approach, while Stellar (XLM) offered the same with a Sharia-compliant component. The viability of the multi-trillion dollar industry also buoyed Litecoin (LTC) to join the queue.
The intense fight for control of the large cross-border market was soon hijacked by Stellar (XLM). All round the globe, the Middle East is highly valued because of the financial derivations coming from the region. About 40% of the region’s population is not in tune with traditional banking. Hence, a decentralized such as what cryptographic currencies offer is a better solution to their needs.
Stellar (XLM) soon found its way into the heart of users therein and thus, ended the rivalry with its arch-enemy, Ripple (XRP). However, there seems to be a ripple in the waves as the Middle East is set to welcome Ripple (XRP).
Though not toeing the pattern for Sharia finance, many market experts think the coin stands a better chance than Stellar (XLM). Ripple (XRP) was embroidered in lawsuits and has multiple partnerships, which make it a serious contender.
What Chance Does Ripple (XRP) Have?
Though its biggest rival has a well established foothold, Ripple (XRP) is coming into the market in a way that could push Stellar (XLM) out of the region. Having forged mergers with other platforms and the viability of its services, Ripple’s (XRP) way into the Middle East is noteworthy.
Saudi Arabia has become among the first to accept financial services from Ripple (XRP). What this spells for the coin is that more platforms within the jurisdiction of the Saudi Arabian central bank will queue in.
The coin had gained recognition from SAMA – the Saudi Arabia Monetary Authority, the leading financial platform in the country. This will be stepping stone to other platforms and Ripple (XRP) will have access to over 400 outfits of the bank and about 5 million users.
Merger With An Exchange
In the wake of partnerships coming its way, Ripple (XRP) also found favor in the eyes of UAE exchange. The latter reviewed the coin’s functionality and impressed with the output, had sought to integrate it as payments solution.
Ripple (XRP) has also just got itself a new participant – KFH. Kuwait Finance House, the pioneer financial house became the first to accept Ripple (XRP) for cross-border payments in Kuwait. This marked their progress as the coin intensifies its drive to move into the Middle East.
The Middle East became an easy market for Ripple (XRP) because the exchange controls many transactions in the region and has about a thousand branches around the world. The aim for the coin’s integration was to drive transactions on the exchange based on Ripple’s (XRP) cross-border standings.
Sharia-Compliance: Ripple’s (XRP) Pathway To Middle East
By default, Islamic finance abhors financial services that have no physical setting. Cryptographic currencies unfortunately fit into that category and had found it hard to gain recognition into the Middle East and other countries within the region. The barrier was soon broken by projects such as Malaysian-based HelloGold and OneGram that launched physical assets such as gold.
Though Ripple (XRP) is not fully Sharia-compliant until it is certified to be, it has leveled the playing field to gain a foothold in Middle East. This was made possible with the success of its products such as xCurrent that fostered cross-border payments.
Stellar (XLM) now has serious competition on its hands as Ripple (XRP) gains major strongholds in the Middle East. Stellar (XLM) either buckles up or watch its investments fall. Regardless of what happens, Ripple (XRP) is poised to take over the crypto-currency market from Stellar (XLM).