Here’s What XRP Could Be Worth If It Becomes the Bridge Currency for CBDCs Globally

XRP may have the potential to reach three-digit prices if it becomes the go-to bridge currency for CBDCs globally.

Notably, XRP trades at $2.19 today, up over 3% this past week. However, despite the current position, many investors still see it as undervalued. This is due to its growing utility in real-world payments, especially the possibility that it could serve as a bridge currency for central bank digital currencies, or CBDCs.

Amid the growing momentum behind CBDC development, there is a rise in demand for a fast, neutral asset that can connect different currencies across borders. 

For context, more than 130 countries, representing 98% of global GDP, are actively researching or testing CBDCs. As a result, several industry commentators have pointed to XRP, with its speed and low transaction cost, as a possible candidate to bridge these CBDCs when they launch.

However, the impact on price remains uncertain. To explore what XRP could be worth if it took on the role of a global CBDC bridge, we asked ChatGPT for an estimate based on market data and reasonable assumptions.

Factors That Could Impact XRP Price

In its evaluation, ChatGPT presented three factors: transaction volume, liquidity needs, and XRP’s supply. Today, the foreign exchange market sees more than $7.5 trillion move every day. If XRP powered just 1% to 3% of CBDC-related flows within that market, it could settle between $75 billion and $225 billion daily.

Notably, supporting that level of volume would require strong liquidity. Analysts often calculate liquidity demand using a simple formula: divide the daily transaction volume by how many times each XRP moves in a day. 

If each XRP moves five times daily, and the volume reaches $100 billion, the system would need $20 billion worth of XRP available at any given time. Spread across the current circulating supply of 55 billion XRP, this creates a base price of around $0.36 per token just to meet liquidity needs.

XRP Price if It Bridges CBDCs Globally

However, that is only part of the assessment. According to ChatGPT, that figure does not reflect market dynamics like speculation, holding, or growing scarcity. Taking those into account, ChatGPT projected a range of potential prices. 

Specifically, with basic adoption as a bridge currency, XRP could rise to somewhere between $10 and $20. If global usage expands and demand for liquidity rises, the price might reach $50 to $100. And if XRP sees wide adoption, lower velocity, and reduced supply, the price could jump to $120 or even cross $500 in the most bullish scenario.

Nonetheless, ChatGPT stressed that all of this depends on factors such as regulatory approval, large-scale adoption, and real-world use working together. While that remains uncertain, the XRPL’s momentum in the CBDC space continues to grow.

Several national banks and global financial bodies already use the XRP Ledger in pilot programs. Ripple has teamed up with countries like Palau, Bhutan, Georgia, and Montenegro. While these projects do not rely on XRP itself, their use of a private ledger similar to the XRPL indicates the network’s appeal for CBDCs.