RIpple’s dominance in Latin America is at risk

• Brazilian central bank wants to compete with RIpple.
• XRP/USD settled at the neckline of a Head-and-Shoulder pattern.

The central bank of Brazil threatens Ripple’s expansion plans

The central bank of Brazil plans to launch a payment system that will have the benefits of digital currency and remain fully controlled by the government and the regulator. The fast payments system, know as PIX, is scheduled to be launched in November 2020, a local media outlet Livecoins reports. Commenting on the system, Roberto Campos Neto, the head of the central bank, noted:

Pix came from a need for a payment system that is cheap, fast, transparent and secure at the same time. Basically, cryptocurrencies were created because people needed an instrument with such characteristics

He also added that the new system would help to reduce the use of physical money and, consequently, decrease the costs related to their maintenance. He believes that physical money is a financial burden for society. The system, controlled by the government, will be available 24/7 and allow people to perform instant transactions via mobile apps or internet banking. 

The project may threaten Ripple’s expansion in Brazil. The company entered a partnership deal with the payment system Money Express and opened an office in a country with a view of massive expansion in Latin America.

XRP/USD: Technical picture

XRP/USD is changing hands at $0.2740 after a short-lived dip below $0.2700 support. The coin is mostly unchanged both on a day-to-day basis and since the beginning of the day. It is the third-largest coin with the current market value of $12 billion and an average daily trading volume of $3 billion.

From the technical point of view, XRP/USD has settled at the neckline created by a potential Head-and-Shoulder pattern. Once it is broken, the selling orders might start snowballing and push the price towards $0.20. 

Earlier, the FXStreet reported that a prominent investor Peter Brandt pointed out to the H&S formation and suggested that the coin is on the verge of a massive sell-off. 

However, the price may recover towards $0.2800 and $0.2850 ( the middle line of daily Bollinger Band) before another attempt to break $0.2700.

XRP/USD daily chart