Ripple: Future of Finance is On-Chain – But Where Does XRP Fit In?
Ripple has taken a closer look at how the world of finance will change by 2030 and has come to a clear assessment. The societal tasks of banks can be better fulfilled via digital solutions, according to Ripple’s latest report on a financial future on the blockchain.
For Ripple, it is clear: the future of finance is on-chain. The fintech has named its current analysis on the topic “Payments on Blockchain Moving Forward.” According to Ripple, 74 percent of all decision-makers in the financial world also assume that blockchain will foster positive developments. Ripple conducted interviews with 1,700 experts in 22 countries for this purpose. Their result: besides lower costs and faster processing, increased transparency is cited as a decisive advantage. For example, 71 percent of respondents from the Asia-Pacific region (APAC) believe that blockchain represents the future option for national and cross-border transactions.
The trend is particularly evident when it comes to micropayments. For these, the digital solutions are essential to enable quick and cost-effective processing, which is impossible with traditional systems. This understanding fits perfectly into Ripple’s strategy to position itself for a financial world based on blockchain innovations.
However, if you want to use the Ripple report to draw conclusions about the XRP currency, you will be disappointed. Ripple makes no concrete statements about the role of the digital bridge currency XRP. Instead, stablecoins, central bank digital currencies (CBDCs), and other tokens that cover specific added value are highlighted as promising components of future financial ecosystems.
Ripple’s study also foresees that non-fungible tokens (NFTs) and smart contracts will enrich the financial world of 2030. The vision: a highly interconnected digital financial world in which cost savings, including through automation, represent a competitive advantage through blockchain. In addition to it, blockchain solutions are meant to make financial services accessible to those who were previously excluded, like farmers instead of intermediaries when selling their products.
In a public blockchain like that of XRP, the hurdle is lower for financiers to create connections to it. But in terms of acceptance as digital money primarily, stablecoins are praised as trendsetters. Thus, Ripple’s new report reflects a wide field for financiers to harvest, even if XRP is not explicitly shown as a column of development towards the future. The company’s base in business-to-business (B2B) communications, whether in APAC, South America, or Europe, is still present. Assuming the projections take place in tangible terms, Ripple would still be in the position to profit in the next decade – and XRP as well, only if the potential is raised actively by Ripple itself.
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