This article discusses the common misconceptions regarding the use of XRP in the banking system and explains its actual role in global liquidity.
Misunderstandings About XRP
Many articles and videos incorrectly interpret XRP's usage by focusing on price charts and market capitalizations. They overlook the underlying infrastructure, leading to misinformation.
Ripple’s Structure and XRP Usage
Ripple has developed two layers: RippleNet, a messaging and infrastructure system used by banks, and ODL (On-Demand Liquidity), where XRP comes into play only when necessary. This is termed 'programmatic liquidity', meaning XRP doesn't need to sit on a bank's balance sheet but is utilized in real-time.
XRP’s Role in Global Liquidity
Critics may mock XRP's low price, but they ignore its role in addressing real issues: instant, affordable access to value in regions with fragmented liquidity like Asia and Latin America.
A proper understanding of XRP and its applications by banks allows a more accurate assessment of its role in the financial system, highlighting its importance as an infrastructure for global liquidity.
