The United States – The world can use Ripple’s XRP as a bridge for cross-border payments, according to Ripple’s CTO, David Schwartz. He claimed that there might not be a one-world fiat, but Ripple’s XRP can serve as a reliable and convenient bridge.
Since central bank digital currencies are gaining more attention in the crypto industry, more financial institutions from different parts of the world are interested in tokenizing or digitizing their currencies. The G-20 Financial Stability or FSB created a regulation on digital assents after talking with XRP’s community members.
According to FSB, the advantages of using Ripple’s XRP can make international payments faster and cheaper. Many people in the XRP community believes that the world has enough room for the global stable coin’s emergence.
When comparing XRP and XLM, many participants asked Schwartz about the “neutral and jurisdiction-less” assets. The Ripple’s CTO responded that many digital and fiat currencies would complete playing a specific role. However, the industry has enough room for more than one. Ripple also sees the dollar’s role is slowly shrinking, and international commerce is increasing in the world’s settlement. Surely, many companies will fight for a share of a bigger market.
If digital assets and its demands will continue to rise, Ripple’s XRP will undoubtedly have ore strength to break through and reach more investors. Under such circumstances, prices will likely shoot up by more than 20%. Schwartz gave a speech to Berkeley University last October 19, 2020, and he discussed the XRO Ledger and its goal of being an asset with neutral jurisdiction. According to the Ripple CTO, XRP Ledger has the required features to process neutral and native asset transactions.
Plus, the platform can also bridge other assets to work with other payment networks. Most people still do not know that Ripple’s XRP plays an essential role in the ecosystem for the world’s greater liquidity. However, since XRP Ledger cannot handle all the world’s payments, Ripple XRP can serve as a backbone or hub that provides a faster bridge or international settlement piece. It may not solve everything, but the platform will surely help with interoperability and concentrating liquidity. This way, many companies or enterprises don’t have to keep funds in each payment system.
Ripple’s XRP and the blockchain technology will surely make cross-border transactions better in the next years. With the digital asset XRP, the world can have instantaneous transfers, especially with Ripple’s On-Demand Liquidity.