XRP is increasingly on the radar of central banks and large companies. Various central banks, including those of Hong Kong and Colombia, work together with Ripple to investigate how the technology of the XRP Ledger (XRPL) can be used for the development of Central Bank Digital Currencies (CBDCs). In addition, shareholders of Japanese SBI Holdings are considering including XRP in their reserves.
If the interest is expanding to large banks worldwide, the impact on the price of XRP can be enormous. Even a minimum allocation of only 0.5% of large banks could cause a considerable price explosion.
How large can the impact be?
The nine largest banks in the world, including Bank of China, JPMorgan Chase, Bank of America, HSBC and BNP Paribas, jointly manage around $ 40 trillion in capital. An investment of 0.5% in XRP would amount to an amount of $ 200 billion.
For comparison: the total market capitalization of XRP is currently around $ 140 billion. This means that in this hypothetical scenario more capital is invested in XRP than the current total value of the currency.
Can XRP rise by 700%?
Suppose every dollar invested in XRP leads to a factor of 5 increase in market capitalization, then an inflow of $ 200 billion would result in a value increase of $ 1,000 billion. This would bring the total market cap of XRP to $ 1,140 billion, which would mean that the price per XRP rises to around $ 19.80 – an explosive growth of more than 700%.
Why would banks use XRP?
Is it realistic that banks start to adopt XRP en masse? According to some crypto analysts, that chance is certainly present. XRP is already seen as an efficient solution for international payments. Especially in Japan, where SBI Holdings is a strong player, XRP is already actively used. For example, SBI facilitates payments to countries such as Vietnam and the Philippines using XRP.
If this trend continues and more banks decide to include XRP in their strategy, that could push the course of the Altcoin to unprecedented heights.
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Source: https://newsbit.nl/xrp-koers-kan-exploderen-dit-gebeurt-als-banken-05-van-hun-vermogen-investeren/
