XRP Controls 20% of Cross-Border Payments

XRP Controls 20% of Cross-Border Payments

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Ripple reports that over 20% of all transactions carried out by financial institutions globally use the native cryptocurrency of Ripple XRP.

Asheesh Birla, senior vice president of product and corporate development, emphasizes that Ripple’s innovative solution On-Demand Liquidity (ODL) has contributed to this. ODL allows XRP to be used as a bridge currency.

Ripple’s token XRP is known as the fastest and cheapest way to make cross-border payments. Despite the fact that XRP dropped below $0.30, analysts believe in a long-term rally for this altcoin. This assumption was recently made by an analyst with nickname Credible Crypto. In his opinion, the XRP price will be 40 cents in the near future. Earlier, the forecast was announced that XRP will soar to almost 50 cents.

The basis for such optimistic statements is just the messages about the adaptation of XRP by financial institutions. In the current turmoil, the possibility of making payments without a central intermediary got a new recognition by market participants. Despite the fact that the S&P 500 has set another record, financiers fear that this is only a short-term market reaction to an unprecedented quantitative easing program. The injection of cash into the economy was justified by the coronavirus crisis. But after a temporary improvement, the markets are highly likely to collapse. In this case, financiers rely on cryptocurrencies as a store of value. And XRP may prove to be the best way for transferring value across borders. On this basis, Asheesh Birla predicts the further adoption of XRP. According to the top manager, market participants now assess not so much the speculative potential of the cryptocurrency, but its usefulness. And they pay more attention to the tangible use of the crypto asset. Thus, the old (fiat) and new (crypto) worlds merge. It will be a matter of time when traditional banks will offer cryptocurrency lending and storage services, says Birla.

Meanwhile, the executive doesn’t rush to bury the “dollar empire”. On the contrary, he notes that with the help of Ripple, the US dollar may receive new support. How? Through the use of stablecoins like Tether pegged to USD. With stablecoins, people outside the US and without bank accounts gain access to the US dollar.