Oliver Michel, the CEO of Tokentus Investment AG, a prominent German Web3 venture capital firm, has voiced his belief in XRP’s potential to serve as the world’s reserve currency.
Michel expressed this view during a recent interview with Der Aktionär on the floor of the Frankfurt Stock Exchange, wherein he emphasized XRP’s role as a bridge asset for cross-border payments.
Pseudonymous XRP community member XRP DROPZ recently spotlighted Michel’s commentary on XRP.
🌐💱 THE FIRST TIME EVER THAT I HAVE HEARD ANYONE CLAIMING AT THE FRANKFURT STOCK EXCHANGE IN GERMANY THAT #XRP COULD BE A "WORLD RESERVE BRIDGE CURRENCY" AS SOON AS CENTRAL BANKS WILL IMPLEMENT #CBDCs ‼️
SOURCE: https://t.co/qoWEbj9vX7 https://t.co/R2DIBfeDiX pic.twitter.com/GcJ6FHurQA
— XRP DROPZ (@DROPZXRP) February 26, 2024
XRP for Cross-Border Settlements
Michel stressed XRP’s crucial role by first citing a scenario involving a monetary transfer from Germany to the United States. He highlighted multiple financial institutions’ involvement in converting the euros to dollars for the recipient.
Michel expressed concern over the high costs and lengthy processing times associated with the traditional methods. On this premise, he remarked that Ripple created a business concept around XRP to solve the highlighted problem.
In particular, Michel noted another scenario wherein, upon initiating the euro payment, the sender’s processing financial institution swiftly converts the euros into XRP with minimal cost.
Subsequently, the receiving bank promptly converts the XRP into dollars and disburses the funds to the recipient, incurring minimal time and cost.
In his words, as translated from German:
“That’s actually the motivation of Ripple – so that the banks or the central banks can exchange the classical currencies into XRP.”
XRP Becoming World Reserve Bridge Currency
Furthermore, during the interview, the correspondent sought Michel’s view on the future role of XRP Ledger and Ripple’s On-Demand Liquidity.
The Tokentus Investment CEO expressed a belief that the future role of XRPL and ODL would be pivotal, especially with the emergence of central bank digital currencies (CBDCs). He highlighted the pressure on central banks to implement CBDCs quickly.
Moreover, Michel sees Ripple’s bridge technology as crucial for facilitating connections between central banks. While citing potential rivals like the JP Morgan coin, he emphasized the advantage of being a First Mover in this space.
As a result, he expressed confidence that XRP has the potential to become the world reserve bridge currency if time favors Ripple’s development.
“With its offer and if time plays for Ripple, then Ripple [XRP] can certainly become the world reserve bridge currency,” Michel remarked.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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