Oliver Michel, CEO of Tokentus Investment AG, a notable German Web3 venture capital firm, shared his views during a recent interview at the Frankfurt Stock Exchange. He believes that XRP is in an ideal position to become a global reserve currency.
XRP’s strength lies in its capacity to offer liquidity for foreign exchange reserves, international transactions, investments, and various global economic applications, making it a strong contender for this role.
Streamlining Cross-Border Transactions with Ripple’s XRP
34 – How the ETF brings price increases:
1 – The public exchanges hold #XRP
2 – The ETF Fund buys #XRP from Public
3 – ETF locks up #XRP
4 – The Derivative Shares are sold to the majority
5 – Public Supply drops, demand goes up from both ETF and public
6 – Price has no other… pic.twitter.com/GKOdCYzgKi— Chad Steingraber (@ChadSteingraber) December 30, 2023
During an interview with Der Aktionar, Oliver Michel highlighted the complexities associated with traditional cross-border transactions, particularly from Germany to the United States. He emphasized the time-consuming and costly process of converting euros to dollars through multiple banks.
Michel pointed out that Ripple strategically devised a business concept around XRP to tackle these inefficiencies. In this scenario, the sender’s bank can convert euros into XRP at a low cost. Subsequently, the recipient’s bank swiftly converts the received XRP into dollars, significantly expediting and reducing the costs of the entire process.
Ripple’s XRP and the Future of Cross-Border Transactions
In a deeper dive into the interview, Oliver Michel discussed the future prospects of XRP Ledger (XRPL) and Ripple’s On-Demand Liquidity (ODL), especially amidst the increasing adoption of central bank digital currencies (CBDCs). Michel stressed the importance of central banks swiftly embracing digital currencies.
Michel emphasized Ripple’s bridge technology as a vital tool for establishing connections between central banks. He noted that while other digital coins, such as JP Morgan’s, exist, Ripple’s early adoption of this technology gives it a competitive edge.
Expressing confidence in Ripple’s progress and developments, Michel believes that XRP has the potential to emerge as the world’s reserve bridge currency given sufficient time and favorable advancements from Ripple.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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