Ripple update: The hypothetical need to not exchange XRP for Fiat?
All of this assumes that Ripple executes its plan perfectly and almost all banks adopt xCurrent, then xRapid.
Would there be a time in the future when the need to exchange XRP for local fiat would just not make sense?
The banks would hypothetically be sending and receiving so much XRP that they would use it as medium of exchange.
**Using the US dollar as an example:** Zerp(a fictional character) receives $100 cash from his Grandmother for his Birthday. He takes that $100 and deposits it at his local credit union. Now, it’s not like the bank takes that money and puts into a vault for Zerp, they credit his account and use the physical cash in their day to day operations.
Now the real hypothetical question is: If banks don’t always need to exchange their XRP for a local fiat currency, because they are going to use it for another transfer that day and they have local currency to use for their cash operation, where would the value of XRP be derived from?
Would all other currencies be measured in the amount of XRP they are worth, like the US dollar?
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.
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