XRP News Today: XRP Gains Institutional Momentum as Global Payment Solution

Ripple and its native token XRP are increasingly being recognized as potential cornerstones of the next decade’s global financial infrastructure. Vandell Aljarrah, co-founder of Black Swan Capitalists, highlighted in a recent video why XRP could play a transformative role in reshaping the global payment system [1]. His analysis focuses on the inefficiencies inherent in the current financial framework and how Ripple's technology, particularly the XRP Ledger, offers a viable and scalable solution.

According to Aljarrah, the current system for international money transfers is outdated and inefficient. While digital communication can occur in seconds, moving money between banks across borders often takes days due to reliance on 50-year-old infrastructure [1]. This inefficiency forces banks to hold around $27 trillion in special accounts, effectively locking up capital that generates no return and cannot be used for lending or investment [1].

Ripple aims to address this by enabling near-instant cross-border transactions through products such as Ripple Payments and Liquidity Hub [1]. These tools allow financial institutions to send money globally in seconds, reducing reliance on intermediaries and unnecessary liquidity reserves. A key component of this ecosystem is XRP, which operates on the XRP Ledger—a blockchain designed for speed, security, and low cost. Unlike Bitcoin, which can take up to 10 minutes to confirm transactions, XRP settles in just three to five seconds with minimal fees [1].

XRP also functions as a liquidity bridge between different currencies. For example, a financial institution can convert USD into XRP and then instantly convert it into another currency, such as Mexican pesos, without the need for costly intermediary accounts [1]. This capability significantly streamlines the process of cross-border transactions and reduces systemic inefficiencies.

Aljarrah draws a parallel between Ripple and the internet, comparing Ripple’s role in the XRP Ledger to Apple’s role in the smartphone revolution. While Apple builds user-friendly tools, the internet functions independently of Apple. Similarly, Ripple develops tools for the XRP Ledger, but the ledger can operate without the company [1]. This distinction underscores the decentralized and resilient nature of the XRP Ledger.

Ripple has already secured partnerships with over 300 financial institutions and is actively engaging with central banks and regulators [1]. These partnerships suggest growing institutional trust and adoption, which could further drive XRP's long-term utility and value.

From a market perspective, Aljarrah argues that XRP is fundamentally different from speculative cryptocurrencies. It addresses a tangible problem—inefficiencies in the global financial system. Two macroeconomic trends could support XRP’s price appreciation over time. First, the devaluation of fiat currencies, driven by persistent money printing by central banks, may push demand toward scarce assets like XRP [1]. Second, XRP’s supply is capped at 100 billion tokens, with less than half currently in circulation. As adoption grows, the limited supply could create upward pressure on demand and price.

Aljarrah believes the legacy financial system is increasingly unsustainable and that only a few cryptocurrencies will emerge as viable alternatives in the new financial order. XRP, with its focus on real-world utility and institutional adoption, is well-positioned to be among them [1]. For investors, this means holding XRP could be a strategic move to align with the evolution of the global financial infrastructure.

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Source:

[1] Title: Why Ripple (XRP) Could Become Most Important Asset of the Decade

URL: https://coinmarketcap.com/community/articles/68976a93b0fdbb4c8132f461/