Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Feb 28, 2024 14:51 UTC
- [article_wishlist article_id="273583" article_link="https://coinpedia.org/news/ripples-xrp-to-become-global-currency-says-german-vc-firm-ceo/"]
Story Highlights
Oliver Michel, CEO of Tokentus, believes XRP is well-positioned to become the world's reserve currency.
Michel highlights XRP's potential to solve inefficiencies in cross-border transactions, making them faster and cheaper.
He emphasizes the potential role of XRP Ledger and Ripple's technology in bridging central bank digital currencies.
In a recent interview at the Frankfurt Stock Exchange, Oliver Michel, CEO of Tokentus Investment AG, a leading German Web3 venture capital firm, confidently stated that XRP is primed to become the world’s reserve currency.
Michel highlighted XRP’s unique ability to provide liquidity for foreign exchange reserves, international transactions, investments, and various global economic applications. This versatility positions XRP as an ideal candidate for a world reserve currency.
Curious about his insights? Dive right in as we break it down!
Solving Cross-Border Hassles
In a recent interview with Der Aktionar, Michel presented a compelling scenario, illustrating the challenges associated with traditional cross-border transactions, especially from Germany to the United States.
He explained the complications involved in converting euros to dollars through multiple banks, which takes a lot of time and money. However, to solve this, Michel highlighted that Ripple strategically developed a business concept around XRP to address these inefficiencies.
In one particular scenario, Michel described how the sender’s bank could convert euros into XRP at a low cost. Later the recipient’s bank would then quickly turn the XRP into dollars, making the whole process faster and cheaper.
Also Read: Ripple’s Global Payment Initiative in Collaboration with US Faster Payments Council
XRP Ledger and On-Demand Liquidity
Michel shared his perspective on the future role of XRP Ledger (XRPL) and Ripple’s On-Demand Liquidity (ODL), especially in light of the rise of central bank digital currencies (CBDCs). Emphasizing the need for central banks to adopt digital currencies promptly, he pointed out Ripple’s bridge technology as a key enabler for connecting central banks, giving Ripple a unique advantage in the market.
Read More: Ripple Price Prediction: XRP Price Poised To Hit New ATH By Mid-2024
The Future Looks Good!
With confidence, Michel expressed his belief that, given time and positive developments from Ripple, XRP has the potential to emerge as the world reserve bridge currency.
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