XRP News Today: "XRP Could Outrun Traditional Finance by Fixing Cross-Border Pain Points"

The BTC Treasury CEO, Elliot Johnson, has emphasized the role of XRP in addressing the shortcomings of global payment systems, calling it a necessary innovation for modern financial infrastructure. His remarks highlight the inefficiencies in traditional cross-border transactions, which often involve high fees and long settlement times. According to Johnson, XRP offers a digital solution that enables near-instant, low-cost transactions, which could reshape how money is transferred internationally [2].

Johnson’s critique of existing payment systems underscores the need for a more efficient alternative. He cited an example of a $40 fee for a transfer from Toronto to South Africa, a process that could take up to three days with no guarantee of completion. In contrast, XRP’s blockchain technology allows for settlement in under four seconds, with costs typically less than a fraction of a cent. This efficiency, he argues, makes XRP a compelling option for users who are looking to bypass the friction and delays of traditional financial systems [2].

The potential integration of XRP with SWIFT, the global financial messaging network, is further fueling optimism. SWIFT has begun testing Ripple’s XRP Ledger as it prepares for a transition to the ISO 20022 standard by 2025. If these trials are successful, XRP could serve as a bridge asset, facilitating faster and cheaper cross-border transactions. Analysts estimate that even a small percentage of SWIFT’s $150 trillion in annual transactions moving through XRP could create a surge in demand, potentially driving the token’s price upward [1].

Ripple has already made strides in building a network of institutional users, including a partnership with SBI in Japan. Through this collaboration, Ripple introduced a stablecoin called RLUSD, which enhances the conversion of fiat to crypto and vice versa. Each time XRP is used in these transactions, it reinforces its utility, which in turn drives consistent demand for the asset. Unlike speculative assets, XRP’s value is increasingly being tied to its real-world application in financial transactions [1].

The broader implications of XRP’s adoption extend beyond cost savings. For individuals and businesses in regions with underdeveloped financial infrastructure, XRP offers a practical solution for moving money across borders without relying on traditional banks. Johnson noted that many in developed economies may not recognize the urgency of such solutions, but for others, these innovations represent a tangible improvement in financial inclusion and economic opportunity [2].

Despite these developments, XRP faces competition from other blockchain platforms that are also vying for a role in global finance. SWIFT is testing alternatives such as Hedera Hashgraph, which may offer different technical advantages. However, Ripple’s advantage lies in its established partnerships and regulatory compliance, which have already positioned it as a trusted player in the institutional space. This first-mover advantage could prove critical in the broader adoption of XRP in the coming years [1].

Source:

[1] XRP Price May Be on the Verge of a Surge as SWIFT Trials ... (https://www.tipranks.com/news/xrp-price-may-be-on-the-verge-of-a-surge-as-swift-trials-ripple-integration)

[2] BTC Treasury CEO Says XRP Is the Answer to Failing ... (https://timestabloid.com/btc-treasury-ceo-says-xrp-is-the-answer-to-failing-global-payment-heres-why/)