A recent tweet from crypto enthusiast All Things XRP underscores fundamental flaws in the current global payments infrastructure. The user states that the global payments system is broken, highlighting key inefficiencies such as long settlement times, high transaction costs, and the need for pre-funded accounts.
The traditional process of sending money across borders is slow, taking several days to complete. It is also expensive, with fees ranging from $25 to $35 per transaction.
Additionally, financial institutions are to hold pre-funded accounts in various countries, which traps capital and reduces overall liquidity. These limitations make the system inefficient and outdated, creating significant barriers for businesses and financial institutions that rely on fast and affordable payments.
All Things XRP argues that XRP is more than just another cryptocurrency. He stated that it is a technology revolutionizing global payments and pointed to Ripple’s On-Demand Liquidity (ODL) as evidence. The tweet challenges the common perception that XRP is merely a digital asset for trading, emphasizing that its real value lies in its ability to facilitate seamless cross-border transactions.
ODL eliminates reliance on pre-funded accounts by using XRP as a bridge currency. Instead of depending on slow traditional banking rails, a bank or financial institution converts fiat currency such as US dollars into XRP.
The XRP is then transferred across the XRP Ledger within seconds before being converted into the local currency of the recipient, such as Mexican pesos or euros. This process ensures instant settlement without needing pre-funded accounts while significantly reducing costs.
The tweet highlights that ODL is not just a theoretical solution but is actively used by major financial entities. MoneyGram has utilized ODL for USD to Mexican peso remittances, Tranglo has integrated the system into its Asian payment corridors, and several global banks and fintech companies have adopted it.
These institutions leverage ODL to move funds more efficiently, demonstrating that XRP has real-world demand beyond speculative trading. The tweet further suggests that as ODL adoption grows, demand for XRP will increase because the digital asset is a fundamental component of the system.
According to All Things XRP, Ripple is positioning XRP as a global bridge asset for instant liquidity. As more ODL payment corridors open, XRP usage will continue to expand. The increased usage of XRP is expected to drive higher demand, reinforcing its role in financial markets. The tweet asserts that this is not a matter of speculation but an actively unfolding process.
The tweet concludes with a call for XRP holders to reassess their perspective on the asset. The user emphasizes that XRP is not just a cryptocurrency but a financial technology that is fixing the inefficiencies of the global payments system.
It is already being used at scale by major financial institutions. Its adoption continues to grow. By changing how they view XRP, holders can better understand its evolving role in modern finance.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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