The global cross-border payment market is estimated to reach $300 trillion by 2030. This immense growth potential has attracted the attention of Ripple, a prominent player in the cryptocurrency space.
XRP is built on the XRP Ledger (XRPL) to capitalize on this cross-border payments market and provide a viable alternative to SWIFT, the current cross-border payment juggernaut.
Ripple recently launched an advertisement advocating for XRP, continuing the narrative of XRP as a solution for revolutionizing cross-border payments.
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The Need for Change in Cross-Border Payments
The ad features Pegah Soltani, Ripple’s Head of Payments Product. Soltani highlights the pain points of the current cross-border payment system, including high transaction fees, slow processing times, and a vulnerability to errors. These inefficiencies can significantly hinder international business and trade.
In contrast, Ripple proposes a solution leveraging blockchain technology and XRP. Blockchain technology offers a secure and transparent method for recording transactions, while XRP acts as a facilitator within Ripple’s network. Ripple is already gaining traction in the cross-border payment industry, and this ad could help boost Ripple’s reputation.
Benefits of XRP Powered Cross-border Payments
The advertisement presents a practical scenario showing the potential benefits. Imagine a company in the UK needs to send British pounds to a recipient in the Philippines. Traditionally, this process can be cumbersome and time-consuming, involving multiple intermediaries and incurring high fees.
With Ripple’s solution, the UK business would first receive a quote for the exchange rate and associated fees. Once approved, they would provide payment instructions. XRP would then be used as an intermediary currency to facilitate the transfer between the UK and the Philippines.
Ripple’s extensive Global Partner Network plays a crucial role in the final stage. This network allows for the near-instant conversion of XRP into the recipient’s desired local currency upon reaching the Philippines. XRP’s transaction speed also ensures the recipient receives the exact amount quoted.
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In a recent transaction, $755 Million Worth of XRP was transferred in 4 Seconds for a negligible $0.01 fee, showing XRP’s superiority to all current systems. The potential for XRP within Ripple’s network has fueled excitement among some XRP proponents, leading to optimistic predictions about its future value.
Some speculate that XRP could reach $10,000 due to the projected growth of the cross-border payment market and XRP’s expanding role in that market.
However, financial experts generally view such forecasts with skepticism. Ripple has also admitted that these payments are demand-neutral, suggesting it might not directly impact XRP’s price.
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