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- The XRP community has been debating on the price trajectory of the XRP token if its network was to process 10% of SWIFT payments.
- The community envisions a future in which the XRP network can process all SWIFT payments as the crypto space replaces the traditional financial system.
As the crypto community works towards replacing the traditional financial system, the XRP community has debated the token’s price trajectory if it replaced SWIFT. SWIFT (Society for Worldwide Interbank Financial Telecommunication) facilitates international payments across banks but has shown to have plenty of inadequacies.
These traditional payment systems are centralized, require approval, expensive, and time-consuming. Cryptocurrencies, spearheaded by Ripple’s XRP and backed by the Ripple infrastructure offer payment solutions to offset these challenges.
A debate has unraveled in the X community with popular community figure Amelie speculating that XRP could skyrocket if XRP’s underlying technology, XRPL, is used to process at least 10% of all SWIFT transactions.
Recently, the XRP proponent highlighted Ripple’s advertisement that noted, “Swift isn’t fast enough.” This was a subtle critique of the traditional financial system. An illustration of the same is that while it can take up to five days to complete an international transfer, XRP is nearly instant (4-5 seconds). This facilitates business growth and efficiency.
With crypto adoption and regulation improving, the analyst speculates that all SWIFT transactions will soon move to the XRPL. The analyst further predicts that it will only require 10% of these transactions moving to the ledger for XRP to reach $1,000.
SWIFT VS. XRP:
SWIFT: 3-5 working days
XRP: 4 seconds cross-border-payments
SWIFT ISN‘T FAST ENOUGH!
I believe all Swift transactions will soon be processed via #XRPL 💵💱💴
10% of SWIFTs network = $1,000+ per XRP! pic.twitter.com/Jt6mumQHfb
— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) July 20, 2024
This would mean enormous returns for holders and new investors based on current prices. At the time of writing, XRP is exchanging for $0.60 after a 4% surge on the weekly chart.
These gains have been facilitated by speculation of a near settlement in a closed-door meeting between Ripple and SEC, as well as comments from U.S. presidential candidate Donald Trump who recently revealed at the Bitcoin conference 2024 that he would fire SEC chair Gary Gensler on day one.
In a recent update, it has further been revealed that Judge Torres who is presiding over the case is considering a final judgment in the case, possibly ending it in the coming weeks, with little chance of an appeal from the SEC. An end to the ongoing case would expedite XRP adoption as well as partnerships that could facilitate XRP’s growth as a cross-border settlement asset.
However, a key hurdle in the adoption of the token by businesses remains the cryptocurrencies volatile nature. With prices changing rapidly, this makes it harder for businesses to hold or transact. Big businesses expect relative stability in value.
On this, it is important to note that Ripple has revealed plans to launch its stablecoin. Ripple is leveraging its blockchain infrastructure to ensure efficiency and security for its pegged 1:1 to the US dollar stablecoin dubbed Ripple USD (RLUSD).
