- West Fargo’s business development manager predicts that XRP could hit $500 by 2027.
- Her prediction is based on the Bank of England’s report of cross-border payments having a value of $250 trillion by 2027.
Shannon Thorp, business development manager at US bank Wells Fargo has re-emphasized that XRP could break multiple resistance levels to hit $500 by 2027. To many crypto enthusiasts, this prediction looks outrageous as the asset would have to surge by 106,429 percent to move from its current $0.49 to $500 in four years.
According to data, XRP has only managed an 8,036 percent surge from the beginning. This also implies that it would have to move from a current market cap of $26,370,021,237 ($26 billion) to $26.5 trillion. Comparatively, the entire gold reserve on Earth is around $12 trillion.
Her prediction is based on the recent Ripple’s 2023 New Value Report which highlights the growing blockchain-based solutions in the cross-border payment industry.
Recently, the Bank of England predicted that the value of cross-border payments could increase from $150 trillion to $250 trillion by 2027.
Yet cross-border payments are typically, though I want to stress not always, slower, more costly, less transparent, and harder to access than domestic payments. And this impacts not just big wholesale players but consumer and remittance payments too. There are instances of payments taking up to 10 days and costing more than 10% of the payment value, and all too often with timing and cost unknown upfront.
Diving Into the Ripple’s (XRP) Report
Ripple’s report mentioned the common shortcomings of the existing global payment system including the lengthy settlement time as a result of being outdated. However, blockchain infrastructure offers a smooth and fast settlement at a cheaper fee. According to Ripple, more than 80 percent of business owners could use crypto in the next 3 years.
A huge shift in finance is underway. More than 80% of global finance leaders expect to begin using crypto in their business in the next three years. Download the 2023 New Value Report to understand how to unlock the power of blockchain for your business.
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The report further estimates that more than 65 percent of the US population could use mobile banking by 2025. On top of this, there is a huge surge in online banking in Asia as 1 billion users are expected to come on board by 2024. Regardless, digital payments are said to be powered by ancient payment infrastructures making them expensive.
On top of that, the involvement of third parties in transactions affects the settlement time. With international transfers, several challenges including “compliance requirements, currency exchanges, varying time zones, and limited operating hours” pose hurdles for excellent deliveries.
The Ripple report mentions that crypto easily solves these problems as payments can easily be transferred into digital assets and converted to fiat. This and other factors are part of the reasons for the $500 per XRP price prediction. It is also important to understand that the $250 trillion represents the value of the entire cross-border payment ecosystem. This means Ripple would have to claim absolute dominance over the sector to hit this price point.
As of press time, XRP was trading at $0.493461 after falling by 1 percent in the last seven days.
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