XRP Vs XLM – What Does Stellar Do Better?

Each of them has made major strides in their respective objectives to become adopted for global remittances.

However, Ripple remains ahead of Stellar in respect to their respective native cryptocurrencies. XRP ranks as the sixth-largest cryptocurrency in terms of market capitalization. On the other hand, XLM ranks 23rd by this metric, but this has not prevented Stellar from making major strides in terms of blockchain adoption.

Ripple’s Blockchain

Due to the unique and popular position that Ripple has created in the cryptocurrency space, it has become reputable in facilitating payment processes. Recently, RippleNet entered into a partnership with GME remittance, one of the leading payment remittance forms in the Asian region.

One of the major developments of Ripple is RippleNet. RippleNet has acquired hundreds of partnerships with financial institutions worldwide, with the motive of enabling these institutions to streamline their payment processes through Ripple’s blockchain.

Such adoption sheds a positive light regarding the future of RippleNet and the entire Ripple ecosystem because blockchain adoption by financial institutions is only expected to increase in the future. If financial firms look for blockchains to partner with in the future, Ripple is expected to come at the top of that list because it has already established its reputation in this regard.

Another unique use case for the Ripple blockchain is in central bank digital currencies (CBDCs). According to Ripple, its blockchain could be used to bridge the gap between digital currencies and CBDCs. Many countries globally are racing to develop CBDCs, and if Ripple’s blockchain has the solution needed, it could end up being a major player where CBDCs are concerned.

Recently, Ripple was included among the parties involved in the research of the development of a CBDC for the United Kingdom. The Bank of England is currently in the research phase of developing this currency, and Ripple is already playing an integral role to ensure that the project’s viability is assessed.

Being part of the Digital Pound Foundation adds to Ripple’s scorecard because the platform will prove that its blockchain can be used for CBDC development and show it has the expertise needed to guide countries working towards developing digital currencies.

However, despite all these strategic initiatives, Ripple Labs, the company behind the development of RippleNet, XRP, and the entire Ripple ecosystem, faces a major lawsuit with the US Securities and Exchange Commission (SEC) regarding the XRP tokens.

According to the regulatory body, XRP tokens are security; hence Ripple engaged in an unregistered securities offering. While the case is still, both parties have made major wins, which has created confusion if Ripple will win the case or the company will be forced to settle with the SEC.

This case was filed by the SEC towards the end of 2020, and it created uncertainty regarding the future of XRP and the entire Ripple ecosystem. This has created a gap that only Stellar can fill.

Where is Stellar doing better than Ripple?

While Ripple is focusing on CBDC development, Stellar is more focused on facilitating digital payments through blockchain technology, and to this effect, it has also partnered with major partners in this field.

Stellar entered into a partnership with MoneyGram. MoneyGram stated that it would use Stellar’s blockchain to enable its users to transact with stable coin. This was a major win for Stellar because MoneyGram is one of the largest payment service providers with a huge global presence.

This was also a win for Stellar because MoneyGram was once Ripple’s partner before the platform denounced this partnership earlier this year. Ripple and MoneyGram stated that their partnership had ended on mutual agreement, but the development happened at the onset of Ripple’s case with the US securities market regulator.

However, there is also the possibility that if Ripple loses the case with the SEC, Stellar could be the next to face regulatory scrutiny, given that the two platforms are almost similar in terms of operations. However, each platform has some unique aspects that stand out to its clients; hence the platform that makes the greatest strides in facilitating payments will emerge as the winner.

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