Mickle, a market commentator and wealth advisor, calls attention to the utility that Ripple and XRP provide to banks and other large corporations.
The seasoned crypto YouTuber spotlighted this in a recent disclosure on X. According to his commentary; this utility is the reason XRP will win in the long term. Mickle began by noting that Ripple does not necessarily wish to replace banks or other financial institutions, as popularly inferred.
Ripple Does not Seek to Replace
Notably, XRP has often taken center stage in discussions around the disruption of traditional finance. This is due to its more efficient transaction system, which leverages the XRP Ledger (XRPL) for faster and more cost-efficient payments.
Last November, asset manager Grayscale identified XRP as a viable alternative to SWIFT. This sentiment is held by multiple industry experts. In September 2023, a live demo showed how XRP reduced transaction cost and time while facilitating payment between Japan and the United States.
Despite XRP’s attractive features and the prevalent sentiments, Mickle suggested that Ripple does not wish to replace these large institutions. According to him, Ripple’s goal is to provide corporations with new tools and infrastructure to help them facilitate better payments.
This is evident in the multiple partnerships that Ripple has secured with central banks across the globe for CBDC initiatives. For instance, Ripple collaborated with Palau to help the country develop its digital stablecoin. In December 2023, Ripple and the Palau finance ministry launched the second phase of the stablecoin pilot program.
Ripple and XRP Utility Keeps Them Relevant
Mickle stressed that Ripple’s utility is the reason behind its constant appearance in multiple documents. The industry commentator said these corporations are now coming to understand that the global system is shifting to the digital era, and they all need to adapt to this change.
However, these institutions do not have the necessary engineers, infrastructure or technical know-how to adapt. As a result, they are heavily reliant on the tools firms like Ripple have offered to them. “That is where Ripple comes in,” Mickle remarked.
As a testament to Ripple and XRP’s growing utility, the payment firm recently expanded its partnership with Fenasbac, the National Federation of Associations of Central Bank Servers. The development was an effort toward bolstering the use of the XRPL in Brazil, a South American country.
Multiple commentators have pointed to this XRP utility in mainstream applications as one factor that could bolster its price growth. Highlighting this utility, analyst XRP Captain argued last month that XRP could reach $57. Following XRP’s spike to $0.74 in March, Ripple CEO Brad Garlinghouse emphasized the importance of real-world utility.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
