Well-known cryptocurrency influencer Xaif recently discussed the significance of XRP in the evolution of the financial system, highlighting its potential role as a key settlement asset.
XRP as a Settlement Asset
In a recently released video, discussions were held on how XRP could replace traditional currency pairs in the foreign exchange markets. Instead of standard foreign exchange pairs, fiat currencies could be traded against XRP, emphasizing the digital asset's advantage over traditional fiat settlements. According to David Schwartz, XRP serves as a settlement asset, enabling near-instant transfers.
The Need for a Reserve Asset
Another speaker emphasized the necessity of a reserve asset behind financial transactions. He argued that currency needs to have backing similar to gold, highlighting the shortcomings of fiat systems. XRP could serve as a more stable alternative, providing a fixed supply of 100 billion tokens.
Institutional Support and Adoption
The discussion also touched on institutional backing for XRP, claiming it is supported by both banks and regulators. Recently, the Office of the Comptroller of the Currency removed restrictions on cryptocurrency trading by banks, bolstering XRP's position as a tool for cross-border transactions.
XRP continues to attract attention as a potential settlement and reserve asset in the new financial system, potentially leading to broader institutional adoption.
