Ripple (XRP) is one crypto that attracts lots of love and hatred in equal measure. However, there is one thing that no one can ignore, and that’s the fact that the Ripple wave is growing stronger by the day. There is growing consensus that ripple could be the answer to the massive inefficiencies that have been characteristic of global finance.
The acceptance of Ripple (XRP) as a source of efficiency in the global financial system is quite visible in the high number of banks that are accepting Ripple for global payments. So far more than 100 banks have adopted Ripple for cross border payments. What’s even more interesting about Ripple is that the IMF is taking note of ripple as one of the technologies that will transform finance in an increasingly digital world. In a paper on the IMF website published on the 8th of May titled, digitization of money and finance: challenges and opportunities, one of the things that the IMF touches on are the opportunities that cryptocurrencies are opening up in finance. Part of the write-up read as follows,
“Some useful technology is being developed to improve market efficiency. For example, services have slashed from days to minutes the time it takes for cross-border payments to reach destinations…”
This indicates that ripple is gaining acceptance not just by banks, but also by policy makers, that drive finance. The IMF is one of the most powerful institutions in the shaping of global finance, and it’s validation of ripple could see banks and central banks all across the world adopt ripple, as the default method for international payments.
Another interesting news around ripple, is the announcement by Coinbase that they are starting a custodial service for large institutional investors. While this is aimed at all crypto assets, it stands to benefit ripple (XRP) the most. That’s because up to this point, ripple has been the crypto of choice for large institutional players. We have seen banks all across the world adopting ripple. As more institutional players look to adopt ripple for pragmatic reasons, they will be further incentivized by this service from Coinbase. In essence, the Coinbase custody service is a catalyst for an even bigger adoption of a ripple, which is great for the price of XRP.
Clearly, ripple is on the road to major adoption, and might actually hit triple digit valuations as many analysts are projecting. The best part about ripple is that the more XRP coins are used, the more the supply will decline in the market, through coin burns. This is good for the long-term value growth of ripple (XRP).
With all these factors at play, it is not hard to see why there is so much excitement around ripple at the moment. It won’t be surprising if ripple dethrones Bitcoin as the number one crypto by market cap. Anyone still dissing ripple due to its large number of coins will be shocked in the long run. This is a crypto that intends to disrupt a multi-trillion dollar market, and a 100 billion coin supply doesn’t matter much at that level.