Pseudonymous XRP community influencer Bitforcoinz believes that XRP at $10,000 is a logical conclusion, given the asset’s supply and potential role in CBDC settlement.
Bitforcoinz made the remark in a recent tweet, triggering varied responses within the XRP community. The influencer claimed that XRP was designed to settle CBDC transactions and that its price could logically reach $10,000 or more.
#XRP was designed to settle CBDC's! There are not enough XRPz out there to brige all the money at a price of $10. XRP at $10'000+ is a logical conclusion🧠
— Lord XRP (@Bitforcoinz) September 2, 2023
Experts tout CBDCs to be faster, more secure, and more reliable than traditional payment systems. However, using CBDCs could be challenging, as they may not be interoperable with each other or with existing infrastructures.
Some pundits have positioned XRP as a viable option for this interoperability challenge. Ripple already leverages XRP for its On-Demand Liquidity (ODL) product to solve this issue. The firm’s work in using XRP to facilitate efficient cross-border settlements has been revolutionary.
In its CBDC Policy-Maker Toolkit released in January 2020, the World Economic Forum declared that XRP and JPM Coin are the most relevant crypto assets for wholesale CBDC settlements.
According to Bitforcoinz, XRP could also fundamentally act as a bridge for CBDCs, enabling efficient and high-liquidity transfers between varying digital currencies. However, he believes the asset’s 100 billion supply might not be enough for this.
The influencer argued that this perceived scarcity bodes well for the price of XRP. To make up for being too scarce to settle CBDC transactions, XRP’s price could further skyrocket. Based on this logic, Bitforcoinz believes a value of $10,000 is a logical conclusion.
XRP Community Reaction
This ambitious target caught the attention of the broader XRP community, eliciting mixed reactions. Notably, XRP is currently trading for $0.4803. To hit $10,000, XRP would need to rally by an astronomical 2,081,932%. Some proponents have dismissed this as wishful thinking.
One anonymous XRP community member acknowledged the potential for a high valuation. However, they proposed a more tempered outlook. They argued that $100 per XRP is a far more reasonable target.
The reasoning behind this is the belief that a $10,000 XRP would imply complete tokenization of various assets, from properties to grains, and a majority takeover of the derivative market.
Another community member believes the remarkable speed of XRP transactions could compensate for the limited supply, eliminating the need for a higher price. Notably, the XRP Ledger settles transactions in three to five seconds.
An XRP critic expressed skepticism regarding XRP’s qualification as the ultimate solution for CBDC settlement. They pointed out that it would have gained wider adoption by now if it were indeed the answer. This critic hinted at the possibility of further price depreciation.