The primary use case for XRP is as a bridge currency for cross-border payments. When a user wants to send money from one country to another, the process is usually slow and expensive. Banks use correspondent banking relationships to facilitate these transactions, which can involve multiple intermediaries and days or even weeks for the transfer to be completed.
With Ripple’s technology, money can be transferred in seconds, with very low fees, and without the need for intermediaries. XRP is used as a bridge currency, meaning that it is converted into the local currency of the destination country, which reduces the cost and time of the transaction.
In addition to cross-border payments, XRP can also be used for micropayments, remittances, and other types of financial transactions. Ripple has partnerships with banks and financial institutions around the world, including Santander, American Express, and Standard Chartered, which use XRP and Ripple’s technology for their payment processing needs.
Why people like XRP?
The benefits of using XRP and Ripple’s technology are numerous. First and foremost, it allows for faster and cheaper cross-border payments. This is particularly important for people who need to send money to friends and family in other countries, as well as for businesses that need to make international payments.
In addition to speed and cost savings, Ripple’s technology also provides increased security and transparency. The blockchain technology used by Ripple ensures that all transactions are recorded on a distributed ledger that cannot be tampered with. This provides increased security for users, as well as greater transparency and accountability for financial institutions.
Another benefit of XRP is that it is a decentralized currency, meaning that it is not controlled by any one entity or government. This makes it resistant to manipulation and provides users with greater control over their funds.
Many banks have already partnered with Ripple, even though the SEC case is still yet to be resolved. Some of the banks that have partnered with Ripple are; Bank of America, Santander, PNC, American Express and many more. Outside of all the utility mentioned in this post XRP also had a reputation as an environmentally friendly blockchain, all the coins were minted at creation, meaning there is no need for an energy intensive mining process.
XRP has a total market cap of over $25 billion and is one of the largest cryptocurrencies in terms of market capitalization. As of April 6th, 2023, the price of XRP is $0.50 USD. Over the past year, the price of XRP has fluctuated significantly, with a high of $0.79 USD and a low of $0.29 USD.
Despite the volatility of the cryptocurrency market, XRP has maintained a relatively stable price compared to other cryptocurrencies. This is likely due to its use case as a bridge currency for cross-border payments, which provides a real-world value proposition for the currency.