Lord XRP (@Bitforcoinz), a notable influencer in the XRP community, put out a post on X suggesting that XRP could reach $10,000. He pointed out that XRP was designed to settle CBDCs. Because of this, a price of $10,000 is a logical conclusion.
A CBDC is a Central Bank Digital Currency, which works as a digital form of fiat currency. They work like cryptocurrencies but they are centralized because they are issued by the Central Bank and controlled by the government. Another key difference is that CBDCs have a fixed value equivalent to the country’s fiat currency.
#XRP was designed to settle CBDC's! There are not enough XRPz out there to brige all the money at a price of $10. XRP at $10'000+ is a logical conclusion🧠
— Lord XRP (@Bitforcoinz) September 2, 2023
Lord XRP’s post stirred some reactions within the XRP community. CBDCs are considered faster and more secure than traditional systems but face interoperability issues. The analyst sees XRP as a solution because it’s designed for cross-border settlements.
The World Economic Forum picked XRP and JPM Coin as the most relevant crypto assets for wholesale CBDC in its CBDC Policy Maker Toolkit from 2020. Ripple’s On-Demand Liquidity (ODL) is also seen as a solution to the interoperability problem. Banks adopting ODL is one of the events that can drive up the price of XRP, which supports Lord XRP’s belief.
However, the main point made by Lord XRP centers on XRP’s supply. If used for CBDC transactions, there aren’t enough tokens to bridge all the money at $10, according to Lord XRP. As its 100 billion token supply would be insufficient, scarce supply could drive up XRP’s price, with $10,000 as a logical price point.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
The Community Reacts
This bold prediction has brought some skepticism from the XRP community. One user suggested that the speed of the transactions could make up for the short supply. With 3 seconds for each transaction, he pointed out that one token could be used repeatedly. He said the price doesn’t have to be that high.
Another user replied, suggesting we temper our expectations. According to the user, reaching that point would mean everything from property to bushels of grain would have to be tokenized. He suggested a conservative price of $100 to avoid disappointment.
This prediction of $10,000 or more due to the current XRP supply also somewhat corresponds with a recent prediction saying $500 would be too small based on the projection of $250 trillion for cross-border payments in 2027.