Without a doubt, Ripple’s XRP is inching closer to becoming a global (reserve) currency. The coin and its technology continue to prove its leadership in the cross-border payment industry. Now, major banks around the world make use of the products (xCurrent and xRapid) and Ttoken – XRP in facilitating cross-border remittance.
In addition to these, the coin is into collaborations with many multinational companies. With such use cases, there leaves no doubt that Ripple’s XRP is gearing up to be the first reserve currency in the crypto-sphere.
What is a Reserve Currency?
A reserve (or global currency) is a large amount of currency under the maintenance of major banks and top financial institutions. These currencies help banks in their transactions, investments and influence their domestic exchange rate.
What is Ripple’s (XRP) Chance?
Ripple’s XRP actually meets up to the requirements of a global currency. The coin is fungible, free of frauds and is scalable. In addition, it has many use cases and it is widely acceptable. Now, banks make use of the cross-border remittance tools to save about 70% of the total cost of their transactions.
Banks are Interested in Ripple (XRP)
Banks have an interest in Ripple’s (XRP) cross-border remittance tools. First, banks utilize the RippleNet blockchain-powered xCurrent tool in moving funds across borders. xRapid provides the required liquidity to trade in emerging markets. These factors ignite banks’ interest in the coin and its technology.
The wave of Ripple’s (XRP) fast transactions is sweeping the crypto-sphere. The processing time does not exceed 4 seconds. Likewise, the fees are cheap. In addition, the technology behind it has been in sustenance for over four (4) years. These factors contribute to its positioning to become a cryptocurrency standard.
Ripple’s (XRP) Liquidity is high
There are many XRP coins in circulation. The current circulating supply is 41, 040, 405, 095 XRP. In addition to the total supply of 99, 991, 724, 864 XRP, making the case for the coin as a global currency will not be much of a task.
Ripple has a Shot at Being a Global Currency
Banks are already making the case for Ripple’s XRP positioning to become a global currency. The collaboration with top companies is a catalyst in making the XRP coin preferred reserve currency in the future.