Ripple update: Liquidity flaw
US bank transfers 1B usd to mexican bank scenario:
US buys 1B usd worth of XRP. Transfers XRP to Mexico.
Mexican bank needs to sell 1B usd worth of XRP into peso. Therefore there needs to be 1B usd worth of buy orders in the peso currency.
My question is with a exponential increase in XRP value, does this automatically mean a increase in buy orders in each banks native currency to fulfil their XRP sell order?
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
Author: tamadeez
Score: 3
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