American Express System Upgrade Creates Ripple Speculation
American Express is undergoing a thorough systems upgrade that has disrupted cross-border payments and wire transfers, according to a recent customer notice. The overhaul, tied to Federal Reserve reforms has reignited speculation that Ripple’s blockchain technology will soon be brought into Amex operations.
With delay in transactions and slim information provided, analysts are pointing to Amex’s earlier collaboration with Ripple to suggest a return or restart of XRP-powered solutions.
Timing Is Suspect: Amex’s Card Refresh and Coinbase Tie-Up
Driving the rumor mill is American Express’ rollout of its “largest ever investment in a Card refresh,” its US Consumer and Business Platinum Cards. The new enhancements are designed to transform the user experience with greater rewards and flexibility.
Just before the upgrade launch, Amex also announced a new partnership with Coinbase, and it launched the Coinbase One Card, giving back up to 4% in Bitcoin rewards. This is a big play into crypto territory for the financial behemoth.
Analysts take this this move of adding tech enhancements, crypto rewards, and previous Ripple affiliations as possibly being an indication of more XRP adoption on the horizon.
RippleNet and Amex: A History Worth Revisiting
While Amex has not officially made any renewed use of RippleNet, blockchain supporters are pointing to the firms’ 2017 partnership for cross-border payments between the US and the UK. Ripple’s answer back then was celebrated for reducing settlement times and fees substantially.
Versan, a Black Swan Capitalist crypto analyst, noted:
“Payment infrastructure is getting upgraded, and American Express is a seasoned Ripple partner.”
However, the XRP price has only reacted marginally, increasing by a mere 1% to $2.20 in the past 24 hours.
Ripple-SEC Case Wanes, Legal Cloud Lifts
In another related update, Ripple CEO Brad Garlinghouse announced a week ago that the company would drop its cross-appeal in its suit against the SEC, and the regulator would do the same.
Even with a court dismissal of a joint motion to reduce Ripple’s $125 million civil fine, Ripple’s Chief Legal Officer Stuart Alderoty affirmed that the company will continue normal operations, noting:
“XRP’s legal status as not a security is unaffected.”
SEC case wrap-up takes away a big overhang for Ripple and could further set the stage for greater adoption, especially if major financial institutions like Amex implement its technology.
Conclusion
American Express’s big makeover and crypto-accommodating moves with Coinbase have brought Ripple back into the headlines. Even without word yet, the confluence of strategic steps and historic synchronization suggests XRP integration speculation isn’t far behind. Whether this will be expressed as market power remains to be seen but everyone’s watching what comes next.
