XRP’s Role in CBDC Settlements Sparks Price Speculation
In a recent tweet, cryptocurrency influencer Bitforcoinz ignited a heated debate within the XRP community by suggesting that XRP was designed to settle Central Bank Digital Currency (CBDC) transactions, potentially driving its price to $10,000 or more. The assertion comes as CBDCs gain traction for their perceived advantages in speed, security, and reliability over traditional payment systems. However, their lack of interoperability with existing infrastructure poses a significant challenge.
#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 conclusionðŸ§
— Lord XRP (@Bitforcoinz) September 2, 2023
Ripple, the company behind XRP, has already demonstrated its commitment to addressing this issue by leveraging XRP for its On-Demand Liquidity (ODL) product, facilitating efficient cross-border settlements. This innovation has garnered significant attention in the financial industry.
Bitforcoinz goes further, proposing that XRP could serve as a bridge between various CBDCs, enabling seamless and high-liquidity transfers among digital currencies. Nevertheless, he acknowledges the potential limitation posed by XRP’s 100 billion supply.
Bitforcoinz argues that this perceived scarcity could drive up XRP’s price exponentially. He contends that $10,000 per XRP is a reasonable target, a notion that has divided the XRP community. Currently trading at $0.4803, achieving this target would necessitate a staggering 2,081,932% rally, leading some to dismiss it as wishful thinking.
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One anonymous community member suggests a more modest goal of $100 per XRP, grounded in the belief that a $10,000 valuation implies complete tokenization of various assets and a majority takeover of the derivative market.
Another community member highlights XRP’s rapid transaction settlement, with the XRP Ledger processing transactions in just three to five seconds, potentially mitigating the need for a higher price.
However, not all voices in the XRP community are optimistic. A sceptic questions XRP’s suitability as the ultimate solution for CBDC settlements, suggesting that broader adoption should have occurred already if it were the answer. This scepticism hints at the possibility of further price depreciation.
As the XRP community grapples with these diverse opinions, the role of XRP in the CBDC landscape remains uncertain, leaving investors and enthusiasts to speculate on the cryptocurrency’s future trajectory.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
