XRP (XRP) is without a doubt one of the most watched cryptocurrencies in the world. Every positive news about it is always awaited with lots of expectations. The latest of these is about some documents from the world bank in which, XRP is termed as a supra national currency.
A supra national currency is a currency that is transnational in nature, one that transcends national borders. This is exciting to XRP investors because it gives hope that XRP could indeed be on its way to becoming a global currency. But while XRP has a good chance of becoming a supra national currency, the context in which it was quoted in this case was not exactly positive. The document in question was from ecurrency a Fintech company pushing for its technology to be used by central banks. As such, the document does not in any way validate XRP, but rather tries to push ecurrency as a superior technology. If anything, it is presenting XRP and other cryptocurrencies as inferior technologies to ecurrency.
However, outside of all that, XRP stands a good chance to become a supra national currency, one that could be accepted as a currency all across the world. That’s because it already has a head start in the banking industry, relative to other cryptocurrencies. So far, several financial institutions are using XRP for cross-border payments. Institutions like SBI are already using XRP for transactions in key global economies like Japan. A similar trend is happening all across the world. Brad Garlinghouse has also recently stated that lots of financial institutions are buying XRP from ripple. This is a pointer to the fact that they intend to use it for liquidity purposes in cross-border payments. Therefore, as XRP slowly becomes the standard in banking, it will become more liquid, stable, and well-positioned to become a supra national currency.
So what about the value of XRP? In the last eight months, XRP has gained unrivalled adoption in banking. Unfortunately, the value of this crypto in itself has not been affected, leading many to question whether adoption is the key to XRP’s value growth. Well, there is a good chance that adoption will start reflecting in the value of XRP in coming years. That’s because once it gets adopted by all banks as a liquidity tool, they will need to purchase it for them to facilitate such payments. Though they don’t need to hold it for long, the fact that they will need to buy XRP for liquidity will give it a huge utility value in the long-run, which will drive up the price. Besides, XRP still has a huge number of speculative investors holding on to it as an asset. Such investors will play a role in lowering the supply of XRP relative to its demand by the banking sector in the long-run. As its usage grows, exchanges will start holding it too, as a liquidity tool, further pushing up demand. No one knows for sure how high XRP (XRP) can go, but its future prospects are great.