An analyst has tipped XRP for greatness as he discloses that several financial institutions are testing the asset for cross-border payments.
However, the overall impact on the price has been dismissed by a user who argues that utility and adoption have no influence on the market.
XRP emerged as one of the major topics of discussion on social media on March 26, when a popular business leader and financial strategist, Jake Claver, highlighted its fast adoption rate. According to the post reviewed by CNF, several major financial institutions are currently testing XRP for real-time payments. However, Claver did not name the institutions involved.
Speaking on the potential impact, the financial strategist suggested that users should pay attention to the market when half a trillion dollars in assets start trooping into the XRP Ledger (XRP) from the ongoing exercise.
The revolution is happening right before our eyes. Watch closely or get left behind.
Fascinatingly, his statement attracted several reactions from his followers with a user identified as CryptoTA downplaying the impact of institutional involvement. According to him, the SWIFT system is currently being used by around 11,000 banks, meanwhile, Ripple has only collaborated with less than 100 banks.
Also, he argued that the market is not moved by usage, utility, or news. Rather, it responds to the activities of whales. Justifying his position, CryptoTA pointed out that XRP has had a series of positive news this year, however, the price has refused to follow the same trajectory.
Directly responding to CryptoTA’s comment, a user identified as “Dean G” clarified that banks are not required to use SWIFT. Explaining the lack of positive movements in the previous cycle, “Dean G” pointed out that the asset has largely been affected by the legal battle with the U.S. Securities and Exchange Commission (SEC). Per his argument, the regulatory uncertainties in the US have affected the adoption and limited XRP’s growth.
Ripple’s (XRP) Commitment to Transforming Cross-Border Payment
In a separate post, analyst Amelie confirmed Ripple’s growing partnership with banks by sharing a post by CEO Brad Garlinghouse. According to Amelie, most of these alliances are yet to be made public.
Commenting on its cross-border impact, Garlinghouse explained that the nature of Central Bank Digital Currency (CBDC) may not be enough to offset inefficiencies in international payments since they are tailored for local usage. In this case, Ripple has been working to bridge this gap using blockchain technology to speed up cross-border payments. Meanwhile, Garlinghouse has reaffirmed his commitment to XRP towards effective development, as outlined in our previous blog post.
Also, Ripple has expanded to different jurisdictions as its presence in the Japanese financial industry was recently highlighted by an analyst called WrathofKahneman. As mentioned in our previous news brief, Ripple has formed partnerships with about 80% banks within the region.
Similarly, the National Bank of Georgia (NBG) earlier pursued an extended partnership with the blockchain company to enhance financial technology and digitization. As noted in our earlier post, there was a pivotal meeting between Ripple executives and Georgia to facilitate this collaboration.
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