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Crypto payment firm Ripple made an advertisement promoting the use of XRP for the cross-border payment market, which is projected to reach over $300 trillion in the next six years.
This advertisement recently garnered significant attention from the XRP community. Edoardo Farina, Head of Social Adoption at XRP Healthcare, reshared the promotion in a post on X yesterday.
#Ripple ad features $XRP for cross border payments and predicts the cross border payments market is expected to reach 300 trillion dollars in payments by 2030 🔥 pic.twitter.com/gzEd5Jt7Bn
— EDO FARINA 🅧 XRP (@edward_farina) June 5, 2024
Ripple Ad for XRP
Notably, the ad featured Pegah Soltani, Ripple’s head of Payments Product, who demystified the principles of blockchain-based payment.
Soltani initially pointed out the massive volume of funds transferred internationally each year. In parallel, she emphasized that the figure is anticipated to reach a staggering $300 trillion by 2030.
Despite the expected surge in cross-border transactions, Soltani expressed concern over the current state of global payments. She noted the current system is often characterized by high costs, slow transfers, and susceptibility to errors.
Meanwhile, Soltani conveyed optimism by highlighting Ripple’s innovative approach to reshaping the movement of value globally. Specifically, Ripple leverages blockchain technology and digital currencies like XRP to facilitate quicker, more cost-effective, and transparent payment solutions for their business clients and end-users.
Practical Scenario Using XRP
As illustration, the Ripple payment head presented a practical scenario where a business intends to transfer British pounds from the UK to the Philippines. The process begins with the business requesting a quote for the foreign exchange rate and pricing.
Upon receiving and approving the quote, the business proceeds to provide payment instructions. In the visual representation, XRP was the intermediary currency facilitating the transfer from the UK to the Philippines.
The funds are then converted into the local currency using Ripple’s extensive Global Partner Network. Consequently, the recipient in the Philippines gets the exact amount initially quoted in the desired local currency. Notably, all of this happens almost instantaneously, per the advertisement.
Optimism Amid XRP Utility
Notably, the use of XRP within Ripple’s payment network remains a cornerstone for many proponents’ enthusiasm regarding the potential increase in XRP’s market value in the future.
Given the anticipated $300 trillion scale of the payment market, some have even speculated that XRP could eventually reach a value of $10,000 per token. However, experts have largely written off such predictions as fanciful, especially considering XRP’s current price of merely $0.52.
Moreover, it is worth noting that, per Ripple’s admission, its use of XRP for payments is demand-neutral, meaning it does not influence price action, Whether negatively or positively.