Recently, XRP gained attention after being mentioned alongside other valuable cryptocurrencies by Donald Trump. This article explores XRP's role in banking, its significance in Web3, and possible participation in US strategic reserves.
XRP's Role in Banking
Launched in 2012, the XRP Ledger (XRPL) is designed for interbank settlements, initially offering xRapid, xCurrent, and xVia solutions. These were later merged under the RippleNet brand. Some of the largest banks have used xCurrent and xVia. Less data is available on those using the XRP-powered ODL service, including SBI Remit and Tranglo.
XRP and Web3
XRP is also used as a gas token, with a small portion burned as an anti-spam measure. However, its role in Web3 is minimal, with XRPL supporting only basic Web3 functions like token issuance and native NFT support. XRPL remains niche compared to smart contract platforms like Ethereum.
Debates on XRP's Strategic Reserve Role
The idea of using XRP in a US strategic reserve is controversial. Few consider it comparable to Bitcoin as an independent money form, often viewing it more as a banking tool due to its centralized management. With 55% of all XRP held by Ripple Labs, concerns about stability and market manipulation arise.
XRP remains a significant cryptocurrency with a contentious reputation, yet its role in banking is vital. Centralization and concentration issues remain barriers to its recognition as an independent asset.
