Cryptocurrency expert SMQKE highlights a significant opportunity for Ripple‘s XRP and Stellar’s XLM in the realm of institutional cross-border payments. This area, characterized by high transaction volumes and values, is where these digital assets can thrive, rather than focusing solely on consumer remittances.
Where does the real potential lie?
The key potential for XRP and XLM is in supporting substantial international transactions managed by banks and financial institutions. Unlike consumer-centric remittance services, these cryptocurrencies are better positioned to capitalize on the needs of large-scale financial operations.
In a social media post, SMQKE shared, “XRP and XLM will target the BIG money,” pointing to cross-border payments as the prime space for these cryptocurrencies. He emphasized this evolution with a video examining Ripple and Stellar’s purpose-designed infrastructure.
What distinguishes business from consumer payments?
In an accompanying video, it is argued that the emergence of blockchain technology doesn’t necessarily displace existing companies that cater to individual consumers. Instead, these businesses may integrate such advancements while staying relevant in their niches.
The presenter underscores the larger opportunity in business-to-business international transactions, where current systems are plagued with inefficiencies. Blockchain solutions can address issues of cost and speed, offering a more streamlined process for financial institutions.
- Ripple and Stellar aim to support backend transactions between banks and financial firms.
- They offer an alternative to traditional correspondent banking methods.
- Their networks allow for faster and more transparent settlements.
Ripple’s permissioned network model is contrasted with Bitcoin’s open ledger system. Ripple only accepts approved financial entities, providing them a controlled transaction environment. This model facilitates more efficient international funds transfers among approved banks.
With these insights, SMQKE underscores how XRP and XLM are well-positioned to meet the increasing demand for upgraded cross-border payment solutions in the institutional finance sector.
