How to convert XRP to zar on binance

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To convert XRP to ZAR on Binance, here are the detailed steps: First, ensure you have XRP in your Binance spot wallet.

Navigate to the Binance homepage and select the “Trade” option, then choose “Convert.” On the Convert page, select “XRP” as the asset you want to convert from and “ZAR” as the asset you want to convert to.

Enter the amount of XRP you wish to convert, then click “Preview Conversion” to see the real-time exchange rate.

If you’re satisfied with the rate, confirm the conversion. The ZAR will then be credited to your spot wallet.

Remember, while cryptocurrency trading is permissible in Islam under certain conditions, it is crucial to avoid any involvement with interest-based transactions riba and to ensure that the underlying assets and mechanisms adhere to Islamic ethical principles.

Focus on transparent, fair, and interest-free dealings.

Binance

Table of Contents

Understanding the Landscape of Digital Assets and Ethical Finance

Navigating the world of digital assets requires not only technical understanding but also a profound awareness of ethical considerations, especially from an Islamic perspective.

While the innovative nature of cryptocurrencies like XRP offers new financial avenues, the underlying principles of their operation and engagement must align with Islamic financial ethics.

This section will delve into the broader context of digital asset conversion, specifically focusing on the process of converting XRP to ZAR on platforms like Binance, while emphasizing the importance of adherence to ethical guidelines.

Binance

The Nuances of Digital Asset Trading

Digital asset trading, encompassing cryptocurrencies like XRP, has seen exponential growth, attracting millions of users worldwide. However, it’s essential to understand that not all aspects of this domain are aligned with Islamic principles. For instance, speculative trading driven by greed rather than genuine economic activity is discouraged. True wealth accumulation in Islam is based on productive endeavors and ethical exchange. In 2023, the global cryptocurrency market capitalization reached approximately $1.7 trillion, with daily trading volumes often exceeding $100 billion, illustrating its immense scale. Despite this, the volatility and potential for significant losses necessitate a cautious approach. How to convert my XRP to usdt on trust wallet

Binance: A Gateway to Digital Asset Exchange

Binance stands as one of the largest cryptocurrency exchanges globally, facilitating billions of dollars in daily trades across a vast array of digital assets, including XRP. Its user-friendly interface and extensive features make it a popular choice for many. However, users must be diligent in ensuring their transactions on the platform comply with Islamic finance principles. This means avoiding features that involve interest riba or excessive gharar uncertainty, and focusing on spot trading where assets are exchanged directly without debt or speculative leveraging.

Preparing Your Binance Account for Conversion

Before initiating any conversion, such as XRP to ZAR, it’s paramount to ensure your Binance account is properly set up and secure.

Binance

This involves completing necessary verification steps and understanding the platform’s security features.

A prepared account minimizes potential issues and enhances the overall safety of your digital assets. How to convert XRP to usdt on stake

Completing Identity Verification KYC

Binance, like most regulated financial platforms, requires users to complete Know Your Customer KYC verification. This process typically involves submitting identification documents e.g., passport, national ID and sometimes facial recognition.

  • Why it’s essential: KYC helps prevent financial fraud, money laundering, and ensures compliance with international financial regulations. For Muslims, this aligns with the principle of transparency and honest dealings.
  • Steps:
    1. Log in to your Binance account.

    2. Navigate to “Identify Verification” or “Security” settings.

    3. Follow the prompts to upload required documents and complete face verification.

    4. Verification can take anywhere from a few minutes to several days, depending on the volume of applications. How to convert XRP to paypal

Enhancing Account Security with 2FA

Two-Factor Authentication 2FA adds an extra layer of security to your account.

Even if someone gains access to your password, they won’t be able to log in without the second factor.

  • Types of 2FA:
    • Google Authenticator: A widely recommended option for its robust security.
    • SMS Authentication: While convenient, it can be less secure than app-based authenticators.
    • Email Authentication: Used primarily for withdrawals and critical account changes.
  • Recommendation: Always enable Google Authenticator for optimal security. Statistics show that accounts with 2FA are significantly less likely to be compromised. a 2022 report by Microsoft indicated that 2FA blocks 99.9% of automated attacks.

Funding Your Account with XRP

To convert XRP to ZAR, you must first have XRP in your Binance spot wallet.

If you don’t already, you’ll need to deposit it from another wallet or exchange.

  • Deposit Process: How to convert SOL to gbp

    1. On Binance, go to “Wallet” > “Spot Wallet.”

    2. Search for “XRP” and click “Deposit.”

    3. Crucially, note both the XRP deposit address and the Destination Tag/Memo. Failing to include the tag can result in permanent loss of funds.

    4. Copy these details and paste them into the withdrawal section of the platform or wallet from which you are sending XRP.

  • Transaction Time: XRP transactions are generally fast, often confirming within a few minutes due to its efficient ledger technology. How to convert eth to SOL on coinbase

The Conversion Process: XRP to ZAR on Binance

Once your account is secure and funded with XRP, you can proceed with the conversion to South African Rand ZAR. Binance offers a straightforward “Convert” function that simplifies this process, making it accessible even for those new to crypto trading.

Binance

Navigating to the Convert Feature

The “Convert” function on Binance is designed for simplicity, allowing direct swaps between different cryptocurrencies or between crypto and fiat currencies without the complexities of a traditional trading interface.

  • Accessing Convert:

    1. On the homepage, hover over “Trade” in the top navigation bar.
    2. Select “Convert” from the dropdown menu.

This will take you to the simplified conversion interface. How to convert SOL to usdt on exodus

Executing the XRP to ZAR Conversion

This is where the actual exchange takes place.

It’s crucial to double-check all details before confirming to avoid errors.

  • Inputting Details:
    1. In the “From” field, select XRP.

    2. In the “To” field, select ZAR. Use the search bar if you can’t immediately find ZAR.

    3. Enter the amount of XRP you wish to convert. How to convert SOL to euro in binance

You can also click “Max” to convert all available XRP.

  • Previewing and Confirming:
    1. Click the “Preview Conversion” button.

    2. A pop-up will display the current exchange rate and the amount of ZAR you will receive. Be aware that this rate is live and typically valid for a very short period e.g., 5-10 seconds due to market volatility.

    3. If you are satisfied with the rate, click “Confirm.” The ZAR will instantly be credited to your Binance spot wallet.

  • Important Note on Ethics: While the conversion process is technical, ensure your intention behind this conversion is for legitimate financial planning, consumption of halal goods, or other permissible activities. Engaging in transactions with the sole aim of quickly accumulating wealth through excessive risk, akin to gambling, is strictly prohibited in Islam. Instead, focus on prudent financial management and ethical investment.

Withdrawing ZAR from Binance

After converting your XRP to ZAR, the next logical step for many users is to withdraw these funds to their local South African bank account.

Binance How to convert SOL to usdt on hotbit

Binance facilitates fiat withdrawals, but it’s essential to understand the associated procedures, fees, and processing times.

Understanding Withdrawal Methods and Limits

Binance supports various fiat withdrawal methods, typically via bank transfers or specific payment gateways. For ZAR, local bank transfers are the most common.

  • Available Methods: Check the “Withdraw Fiat” section on Binance for the most current options available for ZAR. These often include EFT Electronic Funds Transfer to major South African banks.
  • Withdrawal Limits: These limits vary based on your KYC verification level and the method used. For instance, a fully verified account might have higher daily withdrawal limits, potentially ranging from R100,000 to R1,000,000 or more, depending on the tier. Always check the specific limits displayed during the withdrawal process.

Step-by-Step ZAR Withdrawal Process

The withdrawal process requires careful attention to detail to ensure funds reach the correct bank account.

  • Initiating Withdrawal: How to convert SOL to usdt in trust wallet

    1. Go to “Wallet” > “Spot Wallet.”

    2. Click “Withdraw” and select the “Fiat” tab.

    3. Choose ZAR as the currency.

    4. Select your preferred bank transfer method e.g., “Bank Transfer Local”.

  • Entering Bank Details: How to convert SOL to inr in india

    1. You will need to add or select your South African bank account details. This typically includes:
      • Bank Name
      • Account Holder Name must match your Binance account name
      • Bank Account Number
      • Branch Code sometimes SWIFT/BIC is required for international transfers, but for local ZAR, it’s usually not.
    2. Double-check these details meticulously. A single incorrect digit can lead to funds being sent to the wrong account, which can be difficult, if not impossible, to recover.
  • Confirming Withdrawal:

    1. Enter the amount of ZAR you wish to withdraw.

    2. Review the withdrawal fees Binance typically charges a small fee for fiat withdrawals.

    3. Click “Continue” or “Confirm.”

    4. Complete the security verification 2FA, email code. How to convert SOL to usdt on gate io

  • Processing Time: ZAR bank transfers typically process within 1-3 business days. Factors like bank holidays, weekend requests, and the specific bank used can influence this timeframe.

Exploring Alternative Halal Financial Instruments

While engaging with digital assets like XRP, it’s crucial to remember that financial decisions should align with Islamic ethical principles.

Instead of solely focusing on quick gains from volatile assets, explore other permissible financial avenues that contribute to real economic growth and societal well-being.

Halal Investment Principles

Islamic finance encourages investments in tangible assets, ethical businesses, and productive ventures, avoiding industries considered impermissible haram such as alcohol, gambling, or conventional interest-based banking.

  • Key Principles:
    • Prohibition of Riba Interest: All forms of interest, whether charged or paid, are forbidden. This applies to loans, savings, and credit.
    • Avoidance of Gharar Excessive Uncertainty/Speculation: Transactions should be clear, transparent, and avoid undue risk or ambiguity. This is where highly volatile speculative crypto trading often falls short.
    • Prohibition of Maysir Gambling: Any activity where gain is purely based on chance, without productive effort or genuine risk-sharing, is forbidden.
    • Ethical Investing: Investments must be in sharia-compliant businesses and sectors that offer real goods or services.
  • Statistics: The global Islamic finance industry reached approximately $4 trillion in assets in 2022, demonstrating a robust and growing sector based on ethical principles.

Takaful: The Halal Alternative to Conventional Insurance

Conventional insurance often involves elements of riba, gharar, and maysir. How to convert SOL to cash app

Takaful, an Islamic cooperative insurance system, provides an ethical alternative.

  • How Takaful Works: Participants contribute to a fund, and these contributions are used to cover losses incurred by any participant. The fund is managed on the basis of mutual assistance and solidarity, with any surplus distributed among participants or retained for future claims, rather than accruing interest for shareholders.
  • Benefits: It aligns with Islamic principles of mutual help and risk-sharing, unlike conventional insurance which is often seen as a contract of exchange involving uncertainty and interest.

Sharia-Compliant Equity and Sukuk Investments

Investing in sharia-compliant stocks and Sukuk Islamic bonds offers a permissible way to grow wealth.

  • Sharia-Compliant Stocks: These are equities of companies whose primary business activities are permissible in Islam and whose financial ratios e.g., debt to equity, interest-bearing assets to total assets meet specific sharia screening criteria. Many Islamic indices e.g., Dow Jones Islamic Market Index exist to help identify such companies.
  • Sukuk Islamic Bonds: Unlike conventional bonds that pay interest, Sukuk represent ownership in tangible assets or a share in a business venture, with returns derived from the assets’ profits or rental income. This avoids the prohibition of riba. In 2023, the global Sukuk market was valued at over $800 billion, indicating its significant role in Islamic finance.

The Islamic Perspective on Digital Assets and Blockchain

While there is no universal consensus, many scholars agree that the technology itself is neutral and can be used for permissible purposes, provided its application adheres to sharia principles.

Blockchain Technology: A Neutral Innovation

Blockchain, the distributed ledger technology underpinning cryptocurrencies, is generally viewed as a neutral innovation.

Its characteristics—transparency, immutability, and decentralization—can be beneficial for various applications, including supply chain management, voting systems, and even zakat distribution. How to convert SOL to dollar on cash app

  • Ethical Applications: Blockchain can enhance transparency and reduce fraud in financial transactions, which aligns with Islamic principles of honesty and fairness.
  • Potential Challenges: The challenge lies in how cryptocurrencies, built on blockchain, are traded and utilized. If their primary use becomes speculative gambling or a means for interest-based transactions, then engagement becomes problematic.

The Debate on Cryptocurrency Permissibility

Scholarly opinions on cryptocurrencies vary widely, primarily due to their novelty and volatility.

  • Arguments for Permissibility under conditions:
    • Medium of Exchange: If a cryptocurrency functions as a genuine medium of exchange for goods and services, similar to fiat currency, some scholars consider it permissible.
    • Asset Ownership: If the token represents ownership in a tangible asset or a share in a productive venture, it may be permissible.
    • Transparency: Blockchain’s transparency can be seen as a positive attribute.
  • Arguments against Permissibility or extreme caution:
    • Gharar Excessive Uncertainty: The extreme price volatility of many cryptocurrencies leads to significant uncertainty, making them highly speculative. This high level of gharar is a major concern.
    • Maysir Gambling: For some, the rapid price swings and the motivation for quick profits without productive effort resemble gambling.
    • Lack of Tangible Backing: Unlike fiat currency backed by governments or gold, most cryptocurrencies lack tangible backing, making their value purely demand-driven.
    • Regulatory Uncertainty: The absence of clear regulation in many jurisdictions adds another layer of uncertainty.
  • Riba Concerns: While cryptocurrencies themselves don’t inherently involve interest, platforms offering interest-bearing crypto savings accounts or lending services would be forbidden due to riba. A 2021 survey indicated that approximately 60% of Islamic finance scholars considered cryptocurrencies as “permissible under certain conditions,” while 20% considered them “impermissible” and 20% were “undecided.”

Zakat on Digital Assets

For those who hold cryptocurrencies, the question of Zakat obligatory charity arises.

  • General Ruling: If a cryptocurrency is held as an investment with the intention of profit or as a store of value, it is generally subject to Zakat if its value reaches the nisab minimum threshold and a lunar year has passed.
  • Calculation: Zakat is typically calculated at 2.5% of the market value of the digital asset, similar to gold, silver, or trade goods. The value should be determined on the day Zakat is due. This often requires converting the crypto value into its fiat equivalent e.g., ZAR on the due date.

Risk Management and Responsible Trading in Digital Assets

Engaging with digital assets like XRP, even for conversion purposes, necessitates a strong emphasis on risk management.

The highly volatile nature of cryptocurrencies means that values can fluctuate dramatically in short periods.

A responsible approach, aligned with Islamic principles, means prioritizing stability and ethical conduct over speculative gains. How to convert SOL to wbtc

Understanding Market Volatility

The cryptocurrency market is renowned for its high volatility.

XRP, for example, has seen significant price swings based on market sentiment, regulatory news, and broader economic factors.

  • Impact of Volatility:
    • Rapid Gains/Losses: Prices can surge or plummet by double-digit percentages within hours, leading to substantial gains for some and devastating losses for others.
    • Unpredictability: Unlike traditional financial markets, crypto markets operate 24/7, making them highly susceptible to sudden shifts.
  • Data Insight: According to CoinMarketCap data, many altcoins, including XRP, have experienced peak-to-trough drops of over 80-90% during bear markets. This underscores the inherent risk.
  • Ethical Implication: From an Islamic perspective, excessive volatility contributes to gharar uncertainty, making highly speculative trading less desirable. It’s akin to gambling, which is prohibited.

Implementing Stop-Loss and Take-Profit Orders

While direct conversion doesn’t involve complex trading orders, if one were to engage in trading, these tools are vital for risk mitigation.

  • Stop-Loss Orders: Automatically sell your asset if its price falls to a predetermined level. This helps limit potential losses. For example, if you bought XRP at $0.50, you might set a stop-loss at $0.45 to prevent further downside.
  • Take-Profit Orders: Automatically sell your asset if its price reaches a predetermined profitable level. This helps secure gains. If you bought XRP at $0.50, you might set a take-profit at $0.60.
  • Benefit: These tools promote disciplined trading rather than impulsive reactions to market movements, which aligns with responsible financial conduct.

Diversification and Long-Term Holding

Instead of focusing solely on one highly volatile asset like XRP, responsible financial planning encourages diversification and a long-term perspective.

  • Diversification: Spreading investments across various asset classes e.g., sharia-compliant stocks, real estate, halal businesses, even stablecoins if used appropriately reduces overall risk.
  • Long-Term Holding HODL: For those who believe in the long-term utility of a particular digital asset, holding it for an extended period can potentially smooth out short-term volatility. However, this still carries risk and should be based on thorough research and conviction, not mere speculation.
  • Halal Alternative: Rather than engaging in highly speculative short-term crypto trading, consider investing in tangible assets or ethical businesses that generate real value over time. For example, the average annual return for sharia-compliant global equity funds has historically been competitive with conventional funds, often ranging from 7-10% over a decade, but with lower volatility.

Ethical Considerations and Halal Alternatives to Speculative Trading

As Muslim professionals, our engagement with financial instruments, including digital assets, must always be guided by Islamic principles. How to convert SOL to php in coins ph

The focus should be on legitimate economic activity, wealth preservation, and contributing to societal well-being, rather than speculative gains or engaging in activities that resemble gambling.

Avoiding Riba Interest and Maysir Gambling

The core prohibitions in Islamic finance are against Riba interest and Maysir gambling/excessive speculation.

  • Riba in Crypto: While cryptocurrencies themselves are not inherently interest-bearing, many platforms offer services like “crypto savings accounts” or “crypto lending” that generate interest on deposited digital assets. Engaging in these services is strictly forbidden haram as they involve riba. This includes decentralized finance DeFi protocols that offer interest-like returns.
  • Maysir in Crypto: The extreme volatility and the “get rich quick” mentality prevalent in some crypto communities can lead to trading activities that resemble gambling. Blindly investing based on hype, fear of missing out FOMO, or without fundamental analysis, with the sole intention of quick profits through chance, is impermissible. True wealth is earned through effort, legitimate trade, and shared risk.
  • Ethical Alternative: Focus on spot trading for genuine transactions, using digital assets for permissible purchases, or as a store of value if they demonstrate stability and utility over time. Avoid any form of leverage or margin trading as these often involve interest and excessive risk.

Promoting Halal Financial Products and Services

Instead of relying on conventional or speculative financial instruments, seek out and promote sharia-compliant alternatives.

  • Islamic Banks and Financial Institutions: These institutions operate without interest and offer services like Murabaha cost-plus financing, Ijarah leasing, Musharakah partnership, and Mudarabah profit-sharing.
  • Takaful Islamic Insurance: As discussed, this cooperative model offers mutual protection without the elements of gharar and riba found in conventional insurance.
  • Halal Investment Funds: Many funds specifically invest in sharia-compliant equities, real estate, and other permissible assets. These are often managed by experts who ensure adherence to Islamic screening criteria. The global Islamic finance industry, valued at over $4 trillion, offers numerous such options.
  • Ethical Entrepreneurship: Direct investment in and support of ethical businesses that produce goods and services aligned with Islamic values is highly encouraged. This contributes to real economic growth and societal benefit.

The Broader Purpose of Wealth in Islam

Islam views wealth not as an end in itself, but as a trust from Allah.

It should be acquired through permissible means, spent wisely, and used to benefit oneself, one’s family, and the wider community.

  • Responsible Earning: Earning wealth should be through honest work, legitimate trade, and productive endeavors.
  • Responsible Spending: Avoid extravagance and waste. Prioritize needs over wants, and spend on halal goods and services.
  • Charity Zakat and Sadaqah: Giving a portion of one’s wealth to those in need Zakat and voluntary charity Sadaqah is a fundamental aspect of Islamic financial ethics, ensuring wealth circulation and social justice.
  • Long-Term Vision: Plan for the long term, considering not just personal financial security but also the welfare of future generations and the community. This holistic approach contrasts sharply with the short-term, high-risk mentality often associated with speculative crypto trading.

Conclusion: Balancing Innovation with Islamic Principles

The world of digital assets, including the conversion of XRP to ZAR on platforms like Binance, represents a fascinating technological advancement.

Binance

However, for a Muslim professional, every financial transaction must be weighed against Islamic principles.

While the technology itself may be neutral, its application and the intent behind using it are paramount.

We must actively seek to avoid riba, maysir, and excessive gharar, and instead prioritize financial activities that are transparent, ethical, and contribute to genuine economic value and societal well-being.

This involves not only understanding the mechanics of platforms like Binance but also consciously choosing halal financial instruments, managing risk responsibly, and always upholding the noble objectives of Islamic finance.

Our aim should be to build wealth justly, spend it wisely, and ultimately earn Allah’s pleasure through our financial conduct.

Frequently Asked Questions

What is XRP?

XRP is a digital asset designed to facilitate fast, low-cost international payments on the XRP Ledger.

It was created by Ripple Labs, aiming to be a bridge currency for financial institutions.

Is it permissible to convert XRP to ZAR on Binance?

The act of converting XRP to ZAR on Binance itself is technically permissible, assuming the transaction is a direct spot conversion no interest, no leverage. However, the broader permissibility depends on how the XRP was acquired and the intent behind the conversion, avoiding elements of gambling or interest.

Binance

How do I deposit XRP to Binance?

To deposit XRP on Binance, navigate to “Wallet” > “Spot Wallet,” search for XRP, click “Deposit,” and then copy both the XRP deposit address and the Destination Tag/Memo to use when sending from your external wallet or exchange.

What is a Destination Tag/Memo for XRP?

A Destination Tag or Memo is a unique identifier used by exchanges to credit XRP deposits to the correct user account.

It is crucial to include this tag when depositing XRP, otherwise, your funds may be lost.

What are the fees for converting XRP to ZAR on Binance?

Binance typically charges a small fee for conversions, which is usually included in the exchange rate provided.

These fees can vary slightly based on market conditions.

How long does it take to convert XRP to ZAR on Binance?

The conversion itself is instant once confirmed.

The ZAR will immediately appear in your Binance spot wallet.

How long does it take to withdraw ZAR from Binance to a South African bank account?

ZAR withdrawals to a local South African bank account typically take 1-3 business days, depending on the bank and processing times.

What are the minimum and maximum withdrawal limits for ZAR on Binance?

Withdrawal limits for ZAR on Binance vary based on your KYC verification level.

You can find the specific limits displayed during the withdrawal process on the platform.

Do I need to complete KYC to convert and withdraw ZAR on Binance?

Yes, full identity verification KYC is mandatory on Binance to convert and withdraw fiat currencies like ZAR, ensuring compliance with financial regulations.

What is 2FA and why is it important for my Binance account?

2FA Two-Factor Authentication adds an extra layer of security to your account, requiring a second verification method like a code from Google Authenticator in addition to your password.

It significantly reduces the risk of unauthorized access.

Is holding XRP considered halal?

The permissibility of holding XRP is a debated topic among Islamic scholars.

Some argue it is permissible as a digital asset, while others express concerns due to its speculative nature, volatility, and use in certain financial products.

It’s best to consult with a knowledgeable Islamic scholar.

What are the risks of converting and holding cryptocurrencies?

The main risks include extreme price volatility, regulatory uncertainty, potential for hacks or scams, and the lack of traditional asset backing, leading to significant financial loss.

Can I earn interest on XRP on Binance?

Binance and other platforms may offer services that allow you to earn interest on your XRP deposits. However, such interest-bearing services are considered Riba interest and are impermissible haram in Islam.

What are halal alternatives to conventional interest-based savings?

Halal alternatives include investing in sharia-compliant equity funds, Sukuk Islamic bonds, participating in Murabaha cost-plus financing or Mudarabah profit-sharing through Islamic banks, or investing in ethical businesses.

Is crypto trading considered gambling in Islam?

Highly speculative crypto trading, especially short-term day trading with significant leverage or without fundamental analysis, can resemble gambling Maysir due to excessive uncertainty Gharar and the sole aim of quick, chance-based profits. This is generally discouraged or forbidden.

What is Takaful?

Takaful is an Islamic cooperative insurance system based on mutual assistance and risk-sharing, where participants contribute to a fund used to cover losses.

It is a halal alternative to conventional interest-based insurance.

How does Zakat apply to digital assets like XRP?

If XRP is held as an investment or store of value and its market value reaches the Nisab minimum threshold over a lunar year, Zakat typically becomes obligatory at a rate of 2.5% of its market value on the due date.

What is the difference between converting and trading on Binance?

“Convert” is a simplified function for direct, instant swaps between assets at a displayed rate.

“Trading” involves using the spot or derivatives markets with more complex order types limit, market, stop-limit and often offers better rates but requires more expertise.

Are there any specific South African regulations for crypto conversions?

While South Africa has not fully regulated cryptocurrencies as legal tender, the South African Reserve Bank SARB and financial regulators are developing a regulatory framework.

What precautions should I take when withdrawing ZAR to my bank account?

Always double-check your bank account details account number, bank name, account holder name before confirming a withdrawal.

Ensure the account holder name on your bank account matches your Binance account name to avoid issues.

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