XRP is one of the few names that have garnered significant attention in the realm of cryptocurrencies. While Bitcoin has been the flagship digital evolution, the Ripple-backed token is steadily moving towards establishing itself as more than just another digital coin.
One such aspect that is capturing enthusiasts and experts alike is the token’s potential to ascend to the status of the world’s reserve currency. A reserve currency is a globally accepted form of money held by governments, and institutions, and utilized for international trade, investments, and as a hedge against economic uncertainties.
For decades, the US dollar has reigned as the preeminent reserve currency, an entrenched status quo. However, the evolving global financial landscape sets the stage for transformation. In this realm, XRP stands out, fortified by its distinctive attributes and Ripple’s unwavering backing.
Moreover, XRP gains an edge through institutional adoption, a feat orchestrated by Ripple. This San Francisco-based fintech company ingeniously partners with financial institutions and banks, providing seamless cross-border payments and remittances through XRP.
These collaborations provide a pathway for XRP to enter mainstream financial systems and gain legitimacy in the eyes of traditional players. Recently, one of Hong Kong’s largest fintech based in Taiwan, Fubon Bank has implemented the token for the settlement of tokenized assets.
The simulation, expected for the third quarter of 2023, will be based on Ripple’s CBDC platform, which uses the same technology as the XRP Ledger except on a private network.
Global “Ripple” Effects Boost XRP
Previously, The Republic of Palau and Ripple rolled out a limited stablecoin pilot. As reported by TronWeekly, the U.S. Dollar-backed Palau Stablecoin [PSC] will be issued on the XRP Ledger.
This nascent endeavor unfolds in stages, engaging 200 government personnel and local merchants in Palau. Ripple’s reverberations echo across continents.
In April, the firm hogged the limelight when it announced its On-Demand Liquidity [ODL] payment solution was available in India. Several Indian banks joined Ripple’s enterprise blockchain network RippleNet for cross-border transactions.
In the latest groundbreaking move, India and UAE teamed up to conduct the first-ever crude oil transaction in local currency. This opens a massive opportunity for XRP as both nations are reportedly leveraging Ripplenet for their digital currency pilot.