Finance Expert: XRP Is The Future Of Cross-Border Payments. Here's why

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Global payments still move through systems built decades ago, and transactions cross borders slowly at high costs. That reality explains why new digital solutions keep gaining attention.

Recent comments from crypto commentator Levi Rietveld underscore why XRP remains at the center of this shift, even as governments test their own digital currencies.

Rietveld focused on a core issue that many overlook. Central bank digital currencies (CBDCs) focus on domestic use. They do not solve global payment friction. That gap creates an opening for blockchain networks designed for cross-border movement. XRP and the XRP Ledger aim directly at that problem.

Limits of Central Bank Digital Currencies

Rietveld explained that CBDCs solve national challenges, not international ones. He said, “Central bank digital currencies are domestic by nature.” Central banks issue them for internal payment efficiency, monetary control, and financial inclusion. Cross-border payments remain outside their core design.

This matters for global trade and remittances. Businesses and individuals still need a neutral bridge asset to move value between currencies. Without that bridge, CBDCs risk becoming digital versions of existing systems. They improve speed inside borders but fail to connect economies efficiently.

Rietveld also noted the experimental phase underway. He said countries are testing various models. The Central Bank of France has previously expressed a preference for XRP’s features in Europe’s CBDC. The need for an efficient system underscores the importance of an established settlement layer like XRP, which already operates globally.

Ripple’s Strategy Targets the Gap

Ripple positions XRP as a neutral asset that connects different currencies and systems. Rietveld emphasized Ripple’s work with central banks. He said Ripple has “partnered with several central banks around the world,” adding that some partnerships remain unannounced.

These partnerships involve issuing and testing digital assets on the XRP Ledger. That approach allows institutions to maintain control while leveraging an existing blockchain infrastructure.

The XRP Ledger offers fast settlement and low transaction costs. It also operates independently of any single government. Those traits make it suitable for cross-border settlement between CBDCs, stablecoins, and traditional currencies.

Stablecoins and XRP Are Converging

Rietveld also linked CBDC development with the rise of stablecoins. Both address payment efficiency but from different angles. Stablecoins already move value across borders with speed. CBDCs aim to modernize domestic money.

XRP sits between them as a settlement layer, and RLUSD, Ripple’s stablecoin, can play a crucial role in the system. As more digital currencies launch, interoperability becomes critical. XRP can serve as the bridge asset that connects these systems without forcing direct currency swaps.

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