- In a new report, Ripple has identified three trends that will drive the adoption of XRP worldwide.
- The company has christened 2020 the “Year of Digital Assets”, as Ripple expects great progress in many areas.
The year is drawing to a close, so the outlook for 2020 is imminent. Ripple has made great progress in many areas this year. New payment corridors have been opened up and partnerships have been established, and records have been broken. In a new report, Ripple has identified three key trends that will contribute to greater adoption of the XRP token.
Mobile wallets, micropayments and institutional use will strengthen adoption
Ripple describes that digital assets such as XRP will be used for consumer financial products that will speed up and greatly facilitate cross-border payments. Companies such as MoneyGram and goLance are partnering with Ripple to use on-demand liquidity (formerly known as xRapid) to process transactions.
MoneyGram CEO Alex Holmes recently stated in an interview that Ripple has the best remittance platform in the world and he is excited about Ripple’s technology and its “magic”. Ripple shares with MoneyGram the vision of providing easy access to banking services for everyone in the world.
Ripple SVP of Product Asheesh Birla predicts that mobile wallets will conquer the blockchain industry on a large scale. Customers want to be able to handle all services via their smartphone, so this new need will contribute to a wider acceptance:
[…] adoption of digital assets and blockchain technology among mobile wallets and super-apps like Gojek, Grab and PayPal will become more mainstream as they look to expand their services to keep up with customer demand and compete with digital banks.
According to Birla, there will continue to be a stronger demand for credit and loan products. This will create mainstream use cases in developing countries such as Kenya, Nigeria or large parts of Latin America, where the need is most acute.
Ripple SVP of Customer Success Marcus Treacher describes that digital assets will be used in shopping solutions for tourists and travelers. The continuing high charges of credit cards are clearly inferior to the cryptocurrency XRP, so he predicts a significant change in 2020:
Imagine if a Japanese tourist visiting Thailand could buy goods using a mobile app or QR code, triggering an immediate cross-border payment from their Japanese yen account to a Thai baht merchant’s account. If more consumer purchase solutions start leveraging blockchain technology in the same way, the payoff will—quite literally—be huge!
Treacher believes that other large technology companies will enter the growing market of microtransactions and thus contribute as a catalyst for further developments.
The third trend is that trusted custody brands such as State Street or the Bank of New York will present storage solutions, thereby encouraging the entry of institutional players. Breanne Madigan, Head of Global Institutional Markets at Ripple, sees this as an important step towards gaining the trust still lacking in new technology:
The presence of recognized players will increase institutional confidence in the space and pave the way for greater institutional adoption next year.
These key issues will strengthen the use of digital assets such as XRP and its trust and drive adoption.
This is why Facebook’s Libra 2020 will come to a standstill
Ripple goes on to say that clear regulatory conditions will follow in the United States in 2020. The current conditions for companies in the USA are suboptimal compared to international competition. Bitcoin bull Mike Novogratz has already pointed out in several interviews that the USA could lose its pioneering role to China.
Some Facebook team members predict that Libra will neither be launched nor cancelled in 2020. They assume that there will be increased regulatory control and data protection concerns. Furthermore, the project could be further delayed due to a lack of confidence in the project. According to Ripple, today’s first movers will play a crucial role in the future development of the digital financial world.
The price of XRP has been trending sideways for the past 24 hours and stands at USD 0.1846 at editorial time.