German Venture Capital Company CEO Claims XRP Could Become World Reserve Currency

XRP has continued to receive positive attention within the crypto industry. Recently, Oliver Michel, the CEO of a notable German venture capital company, Tokentus Investment AG, projected that XRP could become the world's reserve currency.

The CEO believes the token could resolve some inefficiency issues in cross-border transactions. Through the solutions it brings, users will enjoy faster and cheaper transactions.

XRP's Vital Role Could Launch It As A World Reserve Currency

During an interview with Der Aktionar, Michel discussed XRP's potential as the global reserve currency. He highlighted XRP's role as a bridge token for cross-border payments.

In his discussion, Michel created a scenario highlighting the challenges of traditional cross-border transactions.

He focused on a transfer from Germany to the US to a recipient. Further, he expressed the multiple banks and financial institutions that will be involved in converting euros to dollars for the receiver. According to Michel, the transfer would take longer, and the cost would be higher.

The entire analogy reflects the slowness and high costs associated with the traditional approach of transfers. However, he pointed out that Ripple has provided a solution by positioning XRP at the center of a business concept. Such a concept tackles the inefficiencies that come from such international transactions.

In another scenario, Michel brought in the role of XRP in cross-border payments. He illustrated how the sending bank could swiftly convert euros to ripple. Moreover, the associated cost for the conversion is meager.

Similarly, the receiving bank gets the XRP and converts it to dollars for the recipient to cash out.

The entire process is faster and cheaper than the traditional method.

As translated from German, Michel stated:

That's actually the motivation of Ripple - so that banks or the central banks can exchange the classical currencies into XRP.

Following the interview, a pseudonymous XRP community member, XRP DROPZ, posted Michel's opinion on the X platform.

THE FIRST TIME EVER THAT I HAVE HEARD ANYONE CLAIMING AT THE FRANKFURT STOCK EXCHANGE IN GERMANY THAT #XRP COULD BE A "WORLD RESERVE BRIDGE CURRENCY" AS SOON AS CENTRAL BANKS WILL IMPLEMENT #CBDCs

SOURCE: https://t.co/qoWEbj9vX7 https://t.co/R2DIBfeDiX pic.twitter.com/GcJ6FHurQA

- XRP DROPZ (@DROPZXRP) February 26, 2024

Ripple's Technology And XRP Ledger Serve as a Supporting Bridge

Further, Michel highlighted the role of Ripple's On-Demand Liquidity (ODL) and XRP Ledger (XRPL) in supporting XRP. He shared these views in response to the correspondent's queries during the interview.

According to him, XRPL and Ripple's ODL are essential for XRP sustainability in cross-border transactions.

However, Michel stated that the advent of central bank digital currencies (CBDCs) could be a limitation.Notably, most central banks are under pressure to implement CBDCs.

Even at that, the CEO noted that Ripple's technology will be a crucial support for XRP's sustainability.

It will keep on connecting several central banks and facilitating transactions using Ripple. Also, the CEO acknowledged XRP's advantage as the First Mover within this segment.

Even with some competitors, such as JP Morgan coin, XRP still holds a firm stance. Michel is confident that Ripple will become the global reserve bridge currency if Ripple's technology makes the wave in the future.

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