Ripple and its cryptocurrency XRP appear to be on the way of something big which might impact not only the company and the asset but the entire finance industry. XRP sees more and more adoption among businesses; as we write this, it is set to see an increase of Latin American and US users already.
Although it doesn’t seem to be gaining as much attention as it deserves, Ripple continues to make waves in the financial industry. Certainly not as much as projects such as Facebook’s Libra, or even as the recent price shifts of Bitcoin.
Even so, Ripple and its XRP did make quite a few significant moves recently. One of the biggest ones doesn’t actually come from Ripple itself but from a Spanish bank called Santander.
Santander is a bank that not too long ago issued a mobile payment app known as One Pay FX, which is powered by Ripple blockchain. This is an interesting app that can use XRP as a payment method, although it is not one of Ripple’s products. It is worth noting that the app doesn’t depend on XRP at all, but it does offer it as an option.
So far, the app has been quite popular in several European countries, including Poland, Spain, the UK, Italy, and alike. However, the bank aims to expand the app’s user base to Latin America next, and even to the US. This would allow Latin American and US users to send money internationally as well instantly.
The move was inspired by One Pay FX’s major increase in transaction volume in 2019. It pretty much tripled from January to June of this year, while volumes for Spain grew by around 120% in a single year, as measured in April 2019.
So far, Santander did not reveal when the technology will reach Latin America, or even which countries it plans to target. However, regardless of when and which, XRP’s user base is likely about to increase significantly shortly.
Why it makes sense for the companies to use Ripple (XRP)
While this is a huge move for XRP and Ripple, it is still only one area in which the project is progressing. Thanks to the fact that Ripple is so popular among banks around the world, XRP might become the first cryptocurrency to reach mass adoption. It is clearly becoming more than a purely-speculative asset and is being adopted by businesses around the world — yes, carefully and hesitantly, but they are still making that move.
These companies will have to use XRP to achieve speed/cost benefits, because, without XRP, there will be no fast settlements, only quick payments. Using RippleNet but not using XRP does not give firms the true advantage since the money will still have to move either through traditional banking systems, or 3rd party partners. In both cases, non-XRP transactions will be slow for the end-users.
Once any company partners with Ripple and gains access to RippleNet, it only makes sense for them to start using XRP and make use of all the benefits. In other words, the more partnerships Ripple enters, the more payments it will see. At the same time, As Ripple continues its alliances’ streak, more payment corridors will switch to faster XRP settlements, which will allow for higher liquidity.
That is most likely the reason why the XRP price moves, and the only explanation for its performance that really makes sense. That is also the reason why many in the crypto industry expect that Ripple’s XRP price will surge as soon as the market allows it. In any event, Ripple and XRP seem to be on the precipice of something big which, as things stand, will define the future of both, the company and the asset with a golden pen.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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