According to financial expert Shannon Thorp in a recent tweet, a $500 XRP price won’t be enough to facilitate the $250 trillion projected for the cross-border payments industry by 2027.
Ripple’s $250 trillion estimate draws from a Bank of England (BoE) study, underscoring the economic significance of cross-border payments.
The BoE report emphasizes the substantial growth of cross-border payments due to the increase in the global movement of goods, services, capital, and people over recent decades. BoE’s projection indicates that payments, valued at approximately $150 trillion in 2017, could surge to over $250 trillion by 2027.
From the 2023 New Value Report by #Ripple
$250T is expected by 2027 just in cross-border payments!
— Shannon Thorp (@thorpshannon87) September 11, 2023
Shannon Thorp’s Sentiment
Thorp argues that if XRP is going to facilitate $250 trillion worth of payments, the price of XRP would have to be significantly higher than $500.
Thorp’s viewpoint may be rooted in the fact that there are 100 billion XRP tokens in circulation. To accommodate $250 trillion in transactions, each token would need an average value of $2,500, assuming all XRP tokens were being used.
However, we need to note that this projection is for all cross-border payments and not just those facilitated using XRP. This projection of $2,500 assumes XRP is the only currency being used, which is certainly impossible.
It is important to note that Thorp has also previously argued that XRP’s value extends beyond its utility. According to her, XRP’s creators didn’t want its value to be driven only by investors or external factors. Instead, she believes that XRP needs partnerships with major financial organizations. She also believes XRP needs to solidify itself as a global financial juggernaut promoting financial stability.
The responses the post accrued showed strong belief from members of the XRP community. A user thanked her and said that the post didn’t include the derivatives market, implying that XRP could go even higher.
Another user, who says he’s an XRP hater, also replied stating that the numbers don’t lie and after his calculations three months ago, the value fell between 9 to 10 thousand per token.