Advantages of Ripple (XRP) According to New York University Professor

Bittime - Ripple Labs and XRP are gaining increasing recognition in the global financial industry, as XRP is increasingly used as a bridge currency in international transactions. Professors from New York University (NYU) recently explained how RippleNet and XRP can eliminate risk in instant cross-border payment settlement.

RippleNet and XRP Change the World of Global Finance

At the World Knowledge Forum 2024 event, the professor revealed that Ripple's involvement in cross-border settlements began in 2012. This shows Ripple's position as a leader and innovator in the global payments industry. The professor also emphasized that XRP is open permissionless, which means anyone can join the Ripple blockchain network by following the applicable rules.

One important aspect explained is Ripple's use of On-Demand Liquidity (ODL), which serves as a link between individuals and financial institutions to facilitate smoother international payments. With ODL, XRP is used to create more efficient cross-border transactions, reducing friction in the payment process.

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How ODL Works and the Benefits of Using XRP

The ODL technology implemented by Ripple allows you to transfer money in seconds. For example, someone who wants to send money from US dollars (USD) to Chinese yuan (CNY), would first exchange USD for XRP. The XRP is then sent to an exchange in the destination country and sold for yuan, which is then sent to the recipient's bank account. All of these processes occur very quickly, allowing for instant settlement between countries.

More than just instant settlement, the use of XRP in ODL also offers safer and more reliable payments. This technology not only reduces transaction costs, but also eliminates the need for nostro accounts filled at local banks, which has been a barrier to international payment efficiency. This way, you can save on costs associated with interbank transfers.

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Ripple Payments and XRP Global Expansion

The Ripple Payments system, which is an evolution of RippleNet, supports more than 55 countries and has a payment network spread across 70 markets. This network connects more than 120 fiat currencies, making transactions between countries easier and more efficient. Ripple Payments provides a solution for local banks to improve cross-border payment services without the need to use expensive and slow traditional systems.

Along with the development of this technology, several central banks, including the Central Bank of Russia, have also begun to adopt Ripple and XRP technology for cross-border payment settlement. Research conducted by the Bank of Russia's innovation laboratory in 2018 indicated that Ripple could be a viable solution for international transfer needs.

XRP Growth Potential

The price of XRP is currently at $1.09, experiencing a surge of 62.93% in the past week. This price increase reflects increasingly widespread recognition of XRP's role in the world of international payments. The development and adoption of Ripple technology continues to show great potential in simplifying and speeding up cross-border transactions, which in turn can have a positive impact on global financial markets.

With the ability to reduce risks, costs and time in international transactions, Ripple and XRP are increasingly becoming mainstream solutions for many financial institutions around the world.

FAQ About XRP

What is XRP?

Ripple (XRP) is a digital technology that consists of two main components: XRP as a digital asset and RippleNet as a payment network.

How many rupiah is 1 xrp?

The conversion rate from XRP (XRP) to IDR is Rp17.763,79 per 1 XRP

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Reference:

Benjamin, Godfrey, Media Crypto New Flash, accessed November 21, 2024.

CDN Ripple, Media CDN Ripple, accessed November 21, 2024.

Author: MF