There seems to be a great deal of commentary lately concerning Ripple. One of the most recent mentions was by Brian Kelly, the CEO of BKCM, a cryptocurrency trading firm. According to Kelly, XRP prices will increase when Ripple has greater levels of utility.
The international payment market is massive. Today, its value is around $155 trillion. As Kelly explains, to move the entire $155 trillion market, it would take $31 billion. For that reason, it is best to try a new type of payment system such as Ripple.
Ripple aims to become a real-time gross settlement system, remittance network, and currency exchange. The platform’s CEO Brad Garlinghouse and his team expect XRP to have a higher level of utility in the payment industry. With more widespread use, banks may be able to save up to 60 percent on international money transfers. Of course, it would also mean that banks will need to actually adopt the Ripple ledger and XRP token framework.
One of the main and most integral parts of today’s banking network is Nostro, which is a foreign currency denominated account that is held by bank in another country. The majority of the costs incurred in international banking is the cost of maintaining the inventory of foreign accounts. As Kelly explains, banks may be able to either eliminate or to significantly reduce the costs by adding Ripple ledger and XRP tokens to their business practices.
Ripple is a useful tool, especially because it has been moving forward successfully in the payment ecosystem. Very few, if any, cryptocurrencies have such a strategic partnership with banks. Both of Ripple’s platforms RippleNet and xRapid have been able to attract a wide range of banking partners and financial institutions. The only issue is Ripple’s token XRP has not yet reflected the platform’s positive performance. Kelly’s own opinion concerning Ripple’s token prices is that the platform’s utility needs to increase for the prices to do better as well.