This article focuses on the xRapid technology from Ripple Inc. and the impact of adopting the technology in global payments. We further explain how financial institutions can benefit from the instant global remittances payments and on-demand liquidity offered by XRP payment systems. Finally we offer the monthly price analysis, the volume traded and our future predictions on the digital asset.
“xRapid uniquely uses a digital asset, XRP, to offer on-demand liquidity, which dramatically lowers costs while enabling real-time payments in emerging markets. Built for enterprise use, XRP offers banks and payment providers a highly efficient, scalable, reliable liquidity option to service cross-border payments.”
Ripple (XRP) has long been taunted as a security by various sections of the cryptocurrency communities. This notion increased in proportion after the Securities Exchange Commission (SEC) on Wednesday bypassed naming Ripple (amongst other currencies) as ‘non-securities’ as Bitcoin and Ethereum got the nod. Obviously, XRP being the third largest crypto in the world, not getting the approval is telling. This is one of the problems the xRapid technology faces while seeking mass integration by banks and other financial institutions. Regulation.
Pushing opinions and regulations aside, the overall technology by xRapid is nothing short of revolutionary. The following section details the cost saving benefits and instant payment systems provided by the xRapid technology using XRP.
xRapid benefits in the global remittance industry
Since 2017, Ripple Inc. has partnered with over 100+ financial institutions across the world to test the xRapid feature. The results obtained from the finished testing period showed that the xRapid feature allowed its users to save between 40%-70% of the foreign exchange cost. This cost was always passed down to the customers reducing the overall impact of the remittances sent. The system has proved that payments can be sent from one part of the world to another in a matter of seconds while the costs are close to zero.
One of the main advantages the xRapid system possesses is saving over 55% of the transaction fees witnessed in the $30 billion USD global remittance industry. This cost of global remittances, totaling to $16.5 billion USD according to the World Bank, should be restructured to better the development projects in the emerging economies.
Some of the major emerging economies hold the largest volumes of remittances and the value of the fees being reduced will work in boosting the overall economies of the low class citizens receiving the remittances.
XRP price analysis
The past days have been a nightmare to the cryptocurrency arena with prices of most coins/tokens dropping to year-to-date bottoms. Ripple (XRP) is still holding above the lowest point of the year at $0.5567 USD amidst the turmoil in the market. This represents a sharp 25% drop in the last month and a slight 0.05% drop in the last 24 hours. One key factor to the better performance during this period is the increased acceptance by financial institutions to test and adopt the xCurrent, xVia and xRapid technology.
XRP still holds the third position in terms of market capitalization with a total market cap of $21,683,344,797 USD.