Brad Garlinghouse, the chief executive officer of Ripple, has revealed the groundbreaking role of XRP in significantly disrupting the traditional banking system.
XRP Can Be Used To Settle $27 Trillion Liquidity
XRP has the potential to transform the multi-trillion-dollar banking industry.
In a recent interview with CNBC, Ripple CEO Brad Garlinghouse noted that the San Francisco-based payments startup currently uses the XRP token “as a tool to settle liquidity needs between banks”. According to Garlinghouse, there is a whopping “$27 trillion presently held by different banks in the world to carry out payments between each other.”
The executive believes utilizing XRP to perform these interbank transactions can transform the sector. This is due to the fact that XRP facilitates real-time, low-cost, and efficient transactions, compared to traditional banking methods.
Banking institutions must keep substantial reserves under the legacy system that Garlinghouse highlights so as to enable streamlined international transactions. XRP makes this process seamless by reducing the settlement time to a mere three seconds.
Garlinghouse also indicated that the viability of a crypto asset in the long term is determined by its utility in the real world. The Ripple boss then cited several factors to consider, such as the problem the cryptocurrency is solving, the size of the problem being addressed, and how many customers it currently boasts.
When Will XRP Retake $3 Milestone?
XRP has noticeably failed to rally as much as its peers in the latest crypto market upswing. Currently ranked sixth on the crypto leaderboard, XRP currently boasts a market cap of $33.3 billion, according to CoinGecko data
At its current price of $0.61, XRP is seeing its highest point since the start of 2024, suggesting that investors are still optimistic about the token’s prospects. However, the journey toward higher price points is hampered by the formidable resistance at the $0.7 level.
XRP’s ability to break past this threshold conclusively is paramount for sustaining bullish momentum. This simply means that XRP’s journey to the elusive $3 zone is dependent on the asset’s ability to push through the critical resistance at $0.7. Failure to do so may signify a lack of confidence in the token, potentially triggering a correction.
