Stellar, Ripple and Fintech. Back to the sources

When the markets are capricious, it is not good to make untimely decisions or to panic. Keeping a cool head is the key to limiting the damage and determining if you should continue to buy cryptocurrency or sell your cryptos.

This is a good opportunity to get back to fundamentals concerning the Fintech sector and the contribution of two sure values in the field: Stellar (XLM) and Ripple (XRP).

What is fintech?

The word has become so common that one would almost pass for an uneducated admitting ignorance. The fintech invites itself into conversations as was the case at the time of startups, a word that has since become part of the current vocabulary.

Fintech is the contraction of Financial Technology, Financial Technologies. At the spelling level, you’ll find it in every way: Fintech, fintech, FinTech. Like famous economic media such as The Economist or Challenges, we prefer the very fintech.

Fintech brings together all computer programs or new technologies developed and used to modernize the traditional banking sector. Most of the time, there is a reference to a Fintech company, a company active in this sector. They are sometimes called simply fintech.

The future of the banking sector?

PayPal was one of the pioneers. Today, fintech are legion, think BitPay, Coinbase or Adyen all three of the Top 50 developed by Forbes. That’s telling you the interest for the sector.

In early 2018, a KPMG study revealed that the banking sector considered that the majority of sectoral innovations came from fintech. 60% of the participants in this global study had already entered into partnerships with fintech and more than 80% planned to do so in the medium term. In a world where money is digitalised, international transfers are globalizing and a significant part of the population does not have access to the traditional banking system, fintech innovates on a daily basis. Banks, they do not want to miss the nugget.

Stellar and Ripple make the connection between fintech and blockchain

Too often put back to back, Ripple (XRP) and Stellar (XLM) are two ambassadors of choice for fintech.

Revolutionary technology, the blockchain is now present in all sectors of everyday life and not only financial. Applications in the field of food chain, environment or traditional trade are innumerable. Most cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH) for example, use blockchain technology and much of the digital currency can be considered fintech-related. That said, the best known remain unquestionably XLM and XRP, true pioneers in the field.

Despite a climate of anxiety for investors, these two crypto-currencies prove, each in their own way, that traditional finance and modern finance are not necessarily incompatible and their future remains undoubtedly promising. Good news for distraught investors.

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