Ripple is actively developing technologies related to central bank digital currencies (CBDCs), collaborating with various governments worldwide. This strategy may have a significant impact on the value of XRP.
Ripple's Global Presence in CBDC
Ripple is launching pilot programs for CBDC implementation in countries such as Bhutan, Palau, Colombia, Georgia, and Montenegro. The company is also in talks with over 20 other states regarding the potential creation of digital currencies. These pilots utilize a private version of the XRP Ledger, designed for fast settlement and low costs.
XRP as a Bridge for CBDCs
One of the major challenges for CBDCs is enabling cross-border transactions. XRP can serve as a neutral bridge, allowing different CBDCs to interact with each other, facilitating faster and cheaper money transfers. Ripple's technology is already employed in Southeast Asia and Latin America for quicker and lower-cost remittances.
Impact on XRP Price if Successful
There is a growing speculation about what the price of XRP could be if it becomes a key player in the global CBDC infrastructure. For instance, if XRP were to process 1-3% of the global foreign exchange market, its daily volume could range from $75 to $225 billion. Estimates suggest this could elevate the base price of XRP to $0.36 based on utility, while speculative projections may range from $10 to $500 depending on the adoption of XRP in the market.
Ripple continues to actively develop its technologies, creating infrastructure for future digital currencies. If CBDCs are implemented, XRP may become a vital link in this new financial ecosystem.
