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Ripple CTO: Likely Impact of XRP Adoption By Banks

A crypto pundit Edward Farina recently shared a response from David Schwartz, CTO at Ripple, regarding the likely value impact if banks adopted XRP. Schwartz argues that the widespread adoption of XRP by banks could lead to a significant increase in demand, which could, in turn, drive up its price.

Schwartz uses the example of Uber to illustrate how XRP can facilitate faster cross-border payments. Uber requires drivers to have immediate access to funds after completing a trip, and fiat currency transactions can be slow and cumbersome. XRP, as a digital asset, can be transferred quickly and efficiently, allowing Uber to instantly settle drivers’ payments.

Read Also: Ripple CEO: SEC Will Lose Against Ethereum (ETH) As They Lost Against XRP

This efficiency applies to a wide range of businesses. Companies like Airbnb and Amazon also require the ability to process international payments rapidly. Traditional institutions, such as Seagate, are known to stash funds around the world to expedite domestic payments, even at the expense of slower international transactions.

Schwartz explains that XRP can function as a bridge currency, essentially converting an international payment into two domestic transactions with XRP acting as an intermediary asset. This streamlining process could significantly benefit banks and other financial institutions by reducing processing times and fees associated with international payments.

Increased demand for XRP resulting from its adoption by banks could lead to a positive feedback loop. As more banks embrace XRP, its utility and value proposition become more attractive to other banks, potentially leading to even greater adoption and a corresponding rise in price.

It is important to note that the cryptocurrency market is inherently volatile and speculative. While increased adoption by banks could be a positive indicator for XRP, it does not guarantee a surge in value. The overall health of the cryptocurrency market, regulatory considerations, and unpredictable economic factors can all influence its price.

Read Also: $755 Million Worth of XRP Transferred in 4 Seconds For $0.01 

Despite the inherent uncertainty of the crypto market, Schwartz’s response underscores the potential for XRP to revolutionize the way financial institutions process international payments.


In a nutshell, if XRP can gain widespread traction among banks, it could significantly increase its demand and potentially lead to a substantial price rise.

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Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

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