Ripple Inc., a company based in San Francisco had announced that many banks have been adopting their products. They said that the payment infrastructure of the world has not changed since the pungent day of disco, almost forty years ago. The unnecessary delay of operations and high transaction costs faced by businesses and consumers which the traditional banking system relies on – ‘outdated technology infrastructure’ will be disrupted with the use of Ripple’s xRapid.
Traditional Banking methods create hindrances for both the bankers and their customers as it takes days, and requires the banks to liquidate foreign currency reserves. Ripple eliminates those hindrances with the use of its products like xRapid, xCurrent, and xVia. Instead of liquidating international currency, Banks will be able to facilitate cross-border payment off Ripple’s platform xRapid by utilizing their XRP tokens. This will drive up the demand, which will increase their prices as there are limited number of XRP tokens.
The usage of these products will result in lower transaction costs, faster transactions (15000 transactions per second) and reduces the necessity to allocate foreign reserves for the banks. The information of transactions will be transparent as it’ll be displayed on a public distributed ledger.
This provides a win-win scenario for both the bankers and their customers. At this moment, XRP is undervalued and the increase in adoption of Ripple’s products will definitely increase the demand which will drive up the prices of XRP.
Unlike Bitcoin, Ripple has real-world application and it can’t be mined, which makes it more power efficient and eco-friendly.
According to World Bank, Cross-border payments will increase by 3.4% resulting in $466 billion value. Banks also handle $21.9 trillion worth of cross-border payments. With more than 100 financial institutions partnering up with Ripple for the use of their products like xRapid, xCurrent and xVia, if Ripple even manages to capture a slice of the current cross-border payments market, it’ll create a significant increase in the value of the XRP.