Ripple is a virtual currency with a unique approach to the ledger system used to record transactions. Unlike Bitcoin and Litecoin, it is a “currency agnostic” ledger system, capable of enabling transactions in any type of currency. Although Ripple has its own form of digital currency, known as “XRP,” you can trade any other virtual currency or conventional printed currency by using its system. This may make it an attractive option for you, but you should also recognize the potential dangers of using it. To find out whether Ripple makes sense for you, take the time to seek the advice of Bitcoin attorney Roger E. Naghash. From our office in Orange County, we proudly serve digital currency users throughout California and the entire United States.Distinctive Features of Ripple
Just like Bitcoin and Litecoin, Ripple is basically a ledger with a built-in system of currency expressed in units. But it also accepts exchanges in other currencies and even commodities like gold or silver. If you can find a person willing to trade in your favorite currency or commodity, this system can transact and record the trade for you.
Ripple’s other main advantage is the way it moves debt across its network. It creates something described as a “network of trust,” where IOUs are traded among its users. The exchanges are fairly seamless, and computers do most of the work of implementing and recording transactions. Debt between users is swapped by computers in order to simplify balances between individuals. This digital currency can handle trade in IOUs of different denominations, such as dollars and euros, or move debts among several people.
Ripple’s ledger is far more nimble than the ledger used by Bitcoin and Litecoin, and this has even attracted the attention of a German bank. Based in Munich, Fidor Bank AG is working to integrate this virtual currency into its systems to allow near-instantaneous global money transfer and currency exchange at a low cost to its depositors.Common Problems Faced by Digital Currencies
Ripple is vulnerable to many of the same concerns as other digital currencies. Its system is subject to price volatility, speculation, and even manipulation. Since virtual currency legislation is constantly evolving, its users can be burdened or ambushed by changing government regulations. Therefore, an attorney may be needed to advise you on matters of taxation and regulatory compliance.
At the transaction level, Ripple can be subject to fraud, breach of contract, and criminal activity. In some ways, this is no different from other digital currencies or even cash. However, its clever ledger implementation is more complex than Bitcoin or Litecoin, which can create problems when a lawsuit for fraud or breach of contract emerges, or when a user is caught up in criminal activity.
To deal with the shifting terrain of regulatory changes, and address fraud issues or criminal charges, a Ripple user should choose an attorney wisely. This virtual currency has an added complexity that can make it difficult to comply with regulations. Also, its nuances can be hard to explain to a judge or jury who may lack technical expertise.Dedicated California Attorney Serving Digital Currency Users
When you face the challenges of working with a digital currency, you need an experienced Bitcoin lawyer by your side. Based in California, Roger E. Naghash thoroughly understands the legal implications of virtual currency transactions. Contact our Southern California office for a free initial consultation at 949-955-1000, or use our contact form online.