Ripple Price Rebounds, Are Two New National Currencies Playing A Part?

Is the announcement of national cryptos anything to do with Ripple Price (XRP) rebounding after posting significant losses in the last four sessions? Previously, the instability in prices enhanced regulators opinion that cryptocurrencies fail to work as a currency and medium of exchange.

Ripple price plunged as low as $0.89 during its declining streak of the past four days. However, XRP price bounced back today after reports suggested that Iran and Turkey are following in the footsteps of Venezuela – both countries are planning to launch their coins that would be authorized by their central banks and backed by real cash assets.

National Cryptos

Ripple price rose above $1 today, amid a rebound of more than 6%. Bitcoin (BTC), Ethereum (ETC) and the majority of top ten currencies are also soaring at a robust pace today.

Regulators and the financial sector has been admiring blockchain technologies; several banks and payment services companies are testing ripple’s distributed ledger to improve their payment systems.

The announcement of National cryptocurrencies not only stunned investors, but the launch of these coins soothes traders concerns over the potential ban – at least for some time.

But Why Are Only Banned Countries Launching National Cryptos?

The markets had witnessed several ICO’s from private and registered companies in the last six months in an attempt to raise cash; the announcement of ICO from banned countries looks quite suspicious. It appears that they want to escape global restrictions regarding the movement of money; they are now looking to use digital currencies for the free movement of cash.

Will More Advanced Countries also Join Iran and Venezuela?

Turkey, which is among the developed nations, has also been thinking to create Turkcoin. Turkish parliamentarians say, “The world is advancing toward a new digital system. Turkey should create its digital system and currency before it’s too late.”

National cryptocurrencies look fundamentally sound than other digital currencies considering their underlying value; these coins would be less risky and volatile as they will be backed real cash assets. The idea of creating digital currencies could further enhance trader’s sentiments if the developed nations also lift the need for national cryptocurrencies.

Featured Image: twitter

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world’s leading websites including SeekingAlpha, TheStreet, MSN, and others.

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