Ripple-XRP, page-191

“SWIFT’s messaging system enables interbank transfers across the world through its messaging system. Such cross-border payment transfers are an important part of the banking system today and amounted to $150 trillion in 2015.”

SWIFT enabled transfers amount to about $3 trillion per day. At $1.91 USD per XRP and circulation of 38.74 billion, current market cap is about $74 billion USD. If Ripple replaces SWIFT and xRapid is adopted then the value of XRP will need to be much higher for a stable and fluid market, even allowing for repeated trade using the same XRP on any given day. Not all XRP will be available due to holders using this as an investment/store of value, which will likely include banks and financial institutions if this becomes a standard and they need to hold some reserve. There are well under 38.74 billion XRP freely available on the open market on any given day. Single transfers can be in the billions, XRP needs a value high enough to make this possible.

Banks currently have $27 trillion USD worth sitting idle in NOSTRO accounts to enable the current system of interbank transfers of about $3 trillion per day. Equivalent XRP value assuming all available would be $270 per XRP. Adopting XRP is said to deliver about 60% savings, which would infer an XRP value of $108.

This seems like a big number to me and I will be thrilled even to see a level hitting $10. This doesn’t include possibilities for big picture adoption of XRP beyond its use as a SWIFT disrupter. We are just now seeing adoption of xRapid for money transfer companies. Still awaiting details of 2 household name adopters.

Bitcoin is held up as a store of value, but at the end of the day is slow, expensive and mining is an environmental disaster at this early uptake stage. With no clear utility. XRP can just as easily serve as a store of value but with a clear business purpose integrated into the financial sector. There is every chance that XRP will overtake Bitcoin in market cap this year, especially as media coverage increases and it becomes easier to buy on exchanges.

XRP has a fundamental business case use and is undervalued if you believe it will be adopted for use. Management team also looks the goods. $2 per XRP is going to look very cheap 12 months from now.


https://www.investopedia.com/news/does-blockchains-popularity-mean-end-swift/