Ripple (XRP) has been trying to cater to the cross-border payment market for quite some period of time. It is developing solutions like xRapid and xCurrent. Up until now, the competition was minimal if any. While the developers of Stellar lumens (XLM) were trying to build a similar protocol but up until now, they did not have much success. On the other hand, now there is a new development that IBM has launched a wire payment service which uses the Stellar protocol. The question which remains is whether Ripple will be able to withstand competition from IBM.
Can ripple stand the competition from IBM?
IBM recently announced that it will be launching the cross-border payments solution by the name of World Wire. It will be able to handle thousands of transactions. Moreover, the fees will be on the lower side as well. The protocol will be dependent on the stellar blockchain. The main reason why this is such a big news is that IBM caters to over 97% of the global banks worldwide. Thus, if it is able to develop such a solution, it will be able to very easily pitch it to the banks quite easily.
As per previous statements by IBM, 90% of the transactions worldwide are handled by its own servers. This clearly indicates that it has a pretty firm grip on the banking markets.
The problem is ripple (XRP) is also trying to get to the same market. Up until now, the blockchain-based cryptocurrencies were competing with that. However, now IBM is competing with it. This is the reason why investors are trying to figure out whether it will be able to fend off the competition by IBM. IBM is a tech giant which already has to establish a clientele in the finance and banking industry. This is one of the main reasons why it might be a bit difficult for ripple to compete head-on with IBM.
On the other hand, this is actually pretty positive news for Stellar lumens. It increased by approximately 2% in the last 48 hours. This will also mean that the number of transactions which will now be conducted on the Stellar lumens blockchain will be much higher after the launch of this protocol by IBM. This will ensure that Stellar lumens (XLM) becomes much more popular.
It remains to be seen how ripple (XRP) is able to stand its ground with their clients with IBM competing directly with that.