After its recent victory over the US Securities and Exchange Commission (SEC) in July, blockchain startup Ripple is working to address new growth areas in the digital currency market. One area where Ripple has been putting major focus is central bank digital currencies aka CBDCs.
Early this year in May, Ripple unveiled its own CBDC platform which provides an easy gateway for central banks worldwide to launch their own CBDCs with little effort. The Ripple Central Bank Digital Currency (CBDC) platform is designed as an updated iteration of the XRP ledger (XRPL), which was introduced two years ago. According to an official statement, this CBDC platform will utilize the same blockchain technology as the XRPLedger (XRPL). As a result, users will have the capability to tailor and oversee the entire process of fiat-based CBDC transactions and distribution.
Well, if Ripple’s XRP Ledger manages to secure a larger pie of the CBDC market, it could also provide a massive boost to Ripple’s native cryptocurrency XRP. ripple’s native cryptocurrency XRP can play a crucial role as an intermediary in the CBDC settlements.
#XRP was designed to settle CBDC’s! There are not enough XRPz out there to brige all the money at a price of $10. XRP at $10’000+ is a logical conclusion🧠
— Lord XRP (@Bitforcoinz) September 2, 2023
When uating its supply constraints, It is essential to take into account that there are approximately 100 billion XRP tokens currently in circulation. While this quantity might seem substantial on its own, it’s important to remember that XRP serves as the bridge for all global transactions involving Central Bank Digital Currencies (CBDCs). When viewed in this context, the supply may not appear as ample.
In this context, a price of merely $10 per XRP would prove insufficient in providing the necessary liquidity to support the volume of transactions. However, if XRP were to attain a price level of $10,000 or beyond, it could offer the vital liquidity required for a comprehensive and interconnected digital financial .
The argument for a valuation surpassing $10,000 for XRP is not without merit; it stems from its fundamental purpose. The demand for a highly liquid intermediary currency is poised to increase as countries explore and adopt Central Bank Digital Currencies (CBDCs). XRP, with its distinctive design and intended function, is uniquely positioned to fulfill this role unlike any other.
Hence, regardless of whether one holds this possibility with confidence or remains skeptical, it’s clear that outright dismissal of XRP’s potential to exceed $10,000 might be a hasty judgment. It’s a scenario worthy of thoughtful consideration within the rapidly evolving digital finance landscape.
However, some market analysts are predicting another bullish scenario wherein XRP could attain a valuation similar to that of Google and Amazon. Even this seems to be a distant dream for now. However, what matters currently is how soon clarity in the Ripple vs. SEC case will emerge.
