The XRP (XRP) community is probably one of the most bullish in crypto space. They are ever bullish, regardless of the direction that the coin is taking. Price projections like $589 have become a commonly accepted target in this community. But while these projections may seem outrageous, a look at market trends reveals that XRP permabulls could actually be right. XRP could be 3 steps away from a massive bull run either this year or in 2019.
The first step was XRapid going live. While it was widely expected that XRapid going live would trigger an instant bull run in XRP, it was really just laying the foundation. It provided the banking industry with the platform for them to transition to the age of instant payments. Now that the platform is ready, the next step is for them to start using it. Considering the bureaucratic nature of most financial institutions, this could take time, but it will happen.
Already a few financial institutions are live with XRapid, and banks will adopt it too, out of necessity. The necessity stems from the fact that society is changing and consumers are demanding faster payments in cross-border payments. Therefore, if banks don’t adapt and change, they will lose out to emerging competitors that are offering instant payments.
Actually, SIBOS 2018 was all about faster payments in the face of rising competition from fintech startups. This is a strong indicator that banks are warming up to instant payment DLTs and ripple is leading the way with XRapid. With XRapid, a bank can offer instant payments for cross-border payments, as well as save up to 60% on costs. This will play a role in the on-boarding of banks to the XRapid platform.
The second step is the development of more strategic partnerships and wider adoption by banks. Recently, the head of SBI announced that they are looking into a project in, which the R3 Corda could use XRP. This has triggered speculation that the two platforms could work together. Such a possibility is enhanced by the fact that SBI has vested interests in both ripple and R3. If these two platforms work together, then the integration of banks would happen pretty fast, and this would add to the momentum that is already building up around XRP.
The third step is a change in the regulatory environment. There is no doubt that the regulatory environment around XRP and cryptocurrencies, in general, is getting better. For instance, in Japan and most Asian countries, governments are loosening their stance on crypto. Even in the U.S, a number of moves by regulators point to a scenario whereby, they are moving closer to accepting the reality of crypto. For instance, Coinbase was recently given the approval to offer custodial services for XRP and other digital currencies. Once the SEC comes out clearly and states that XRP is a currency, it will open up the floodgates for step 2 (adoption) and unlock the true value of XRP.
The above steps paint a good picture for XRP and reveal the fact that XRP permabulls may not be delusional after all. This is a coin that could transform the financial markets for good.