Ripple (XRP) has made significant progress in the banking industry. Most of this progress is in Asia, mainly due to the more progressive nature of the regulatory regimes in this region. In the Middle East, for instance, ripple has made in-roads in a number of countries, the latest one being Bahrain. Yesterday, ripple’s Navin Gupta sent out a tweet from Bahrain, about how ripple is making a difference in the lives of their clients. This indicates that ripple has gained a significant presence in Bahrain’s banking industry, just like it has done in other countries in the Middle East and other Asian countries.
But what do all these partnerships mean for XRP investors, considering that the price has been stuck below $0.50 for quite some time now? Well, XRP’s value will come from its usage as a liquidity tool by banks and other financial institutions. However, contrary to what most people believe, this usage of XRP as a liquidity tool is not that large at this point. There are only a handful of financial institutions that are using XRP. Most of the institutions that ripple has brought on board ripplenet so far are using XCurrent. However, they will upgrade over time. The catch is in the commercial incentive.
When an institution starts using XRapid, it saves up to 60% of its transaction costs in cross-border payments. This means that as ripple continues to onboard banks on to ripplenet, the more the probability that a good number of them will start using XRapid and drive up the value of XRP. For instance, if banks in key Middle East economies such as Bahrain and the UAE start using XRapid, it could have a major impact on the value of XRP because the Middle East a key component of the global economy and billions of dollars flow in and out of this region on a daily basis. When coupled with all the other banks in greater Asia that are using XCurrent, it is clear that the value of this crypto could be headed for a major surge in value in the future. All it needs is patience until the various banks that are going live with XCurrent upgrade and start using XRP.
Were it not for the lack of harmonized global regulations, XRP (XRP) would have made tremendous gains in value at this point. However, regulations are getting better with time, as major economies such as Japan, South Korea, and Singapore move to create favorable crypto related regulations. To avoid getting left behind western economies especially the U.S will also move to craft more favorable regulations. This will open up the adoption of XRapid by western banks and open up the floodgates of money that is flowing through ripple. This could see the value of XRP rise drastically to double or even triple digits a coin based on its utility in banking. But these are long-term projections and change, especially change as fundamental as this one takes time. Investors should treat it as a marathon not a sprint.