- Ripple’s XRP and XLM touted as game changers in international bank transfers.
- Analyst Kyren underscores the potential of Distributed Ledger Technology (DLT) in modernizing banking operations.
A Deep Dive into XRP’s Promise in Global Banking
Former banker and cryptocurrency analyst Kyren has shone light on the transformative potential of cryptocurrencies, specifically Ripple’s XRP and XLM, in reshaping the archaic international bank transfer system.
Kyren’s first-hand experience with banking over four years has given him insights into its pitfalls, particularly the sluggishness and exorbitant costs tied to international money transfers. Traditional banking mechanisms rely on Nostro accounts—accounts a bank holds in a foreign country’s currency—for smooth cross-border transactions. However, this model is fraught with inefficiencies.
Redefining Banking with Ripple’s XRP
With cryptocurrencies like XRP, banks no longer need to tie up vast sums in these Nostro accounts for liquidity. Instead, XRP can act as an intermediary currency, ensuring swift and inexpensive global transfers. Furthermore, instead of the bank’s hefty fees and extended transaction times, XRP and XLM can finalize these transfers in mere moments, all while ensuring minimal fees.
Kyren also touched upon XLM, highlighting its capabilities similar to XRP. Not only does it ensure affordable and swift money transfers between individuals worldwide, but it also sidesteps the burdensome fees often levied by middlemen.
While XRP and XLM are stellar examples, Kyren underscored another lesser-known project that holds significant potential. Despite not boasting the same market capitalization as XRP, this project has a formidable team that has clocked in time with giants like Visa, SWIFT, and PayPal.
The Power of Distributed Ledger Technology
Turning to the broader realm of technology, Kyren underscored the magic of Distributed Ledger Technology (DLT). In his banking tenure, he often found himself manually updating payment ledger systems—a task that DLT could have simplified immensely. Blockchain, a type of DLT, brings automation to this task, making it not only quicker but also more trustworthy.
With these advancements in place, Kyren anticipates a future where the banking realm wholeheartedly embraces cryptocurrencies like XRP or XLM. This move will be imperative to ensure heightened efficiency, robust security, and unmatched speed. A failure to integrate such technology might see the banking sector fall behind.
As of this article’s penning, XRP‘s price sits at $0.49, holding a market cap of $26.2 billion, while XLM trades at $0.1055, boasting a market cap of $2.9 billion.
