The post Expert Explains Why an XRP Price of $1,000 is Not a Fantasy appeared on BitcoinEthereumNews.com.

A recent commentary by Crypto Tank, an XRP community figure, has brought the conversation around XRP’s potential surge to $1,000 back into focus.  According to Crypto Tank, those who believe such a price point is unrealistic may not fully grasp the vast utility XRP could offer, especially in the global financial system. The Role of SWIFT in Global Finance To understand how XRP could reach such unprecedented heights, it is important to examine the current global financial systems and how they could benefit from adopting XRP.  SWIFT, the Society for Worldwide Interbank Financial Telecommunication, is a cornerstone of cross-border transactions, handling between $5-7 trillion in daily messaging volume.  Yet, SWIFT’s system only facilitates the messaging aspect of transactions, meaning actual settlement happens through additional processes such as the TARGET2 system in the European Union or FEDWIRE in the United States. Notably, SWIFT’s current system faces challenges in terms of both speed and cost. Each messaging transaction can cost between $20 to $50, and settlements can take days.  By integrating RippleNet, the entire transaction process—including both messaging and settlement—could be handled in mere seconds at a fraction of the cost. This shift could save banks hundreds of billions in fees annually. Why XRP Could Be Poised for High Demand Crypto Tank argues that as financial institutions realize the significant cost savings XRP could provide, there will be a massive incentive for adoption.  If just 10% of SWIFT’s current daily volume were settled using XRP, that would already involve approximately $500 billion in transactions per day.  Currently the cost of a Swift messaging transaction is $20-50 versus pennies with XRP. So banks will be greatly incentivised to adopt RippleNet using XRP to save hundreds of billions in fees per year. Now lets say banks settle just 10% of transactions to start with…

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Filed under: News - @ September 28, 2024 10:27 am