Ripple Labs, a cryptocurrency payment company, continues to set its and XRP's ambitions higher than ever as the company moves closer to disrupting the global financial messaging giant SWIFT. After Ripple's CEO, Brad Garlinghouse, previously predicted that XRP could capture 14% of SWIFT's transaction volume, new estimates are now pointing to even bolder targets.
How Could Ripple Securing 20% of SWIFT Impact XRP?
A new report by Paul Barron, a technology expert and cryptocurrency analyst, has revealed an updated forecast on Ripple. The report highlights the growing potential of XRP in competing with SWIFT in cross-border transactions. Ripple's ambitions in global financial infrastructure are becoming clearer, as new forecasts suggest that XRP could ultimately handle up to 20% of SWIFT's transaction volume.
Notably, these new estimates were made just a month after Garlinghouse and Ripple predicted that SWIFT's transaction volume would reach 14% within five years. Now, with increasing institutional interest, market growth momentum, and rapid adoption rates, expectations are soaring.
SWIFT, the global messaging network used by banks and international financial institutions to securely transmit information and guide cross-border payments, is currently processing annual transaction volumes of up to $150 trillion. Based on this staggering figure, Barron reveals that Ripple's previous forecast of 14% transaction volume would mean $21 trillion flowing through the XRP Ledger (XRPL) annually.
Although 14% of SWIFT's transaction volume is already a significant figure, Ripple now believes that XRP could handle an even larger market share in the global cross-border payments market. Based on Barron's calculations, if Ripple secures 20% of SWIFT's transaction volume, the annual value flowing through the XRP ledger would amount to approximately $30 trillion.
This forecast emphasizes Ripple's increasing confidence in XRP as a viable alternative to the decades-old SWIFT network. The company has consistently asserted its goal to replace SWIFT, with XRP becoming a key factor in transforming the global payment structure.
The Expansion Potential of XRP and Its Impact on the Market
The vision of XRP handling a large volume of SWIFT's annual transactions poses significant impacts on its scalability, long-term utility, and valuation. With such scale, XRP will not only be a bridge currency for remittances but also a pillar in the future of the traditional financial market and digital currency.
Ripple's strategy revolves around surpassing the traditional SWIFT system, which has long been criticized for slow processing times and high costs. The XRPL, with its near-instant processing capabilities and low transaction fees, is a modern alternative that has the potential to streamline large-scale transactions.
This expanded use case could raise the price of XRP, potentially pushing its current price to an unprecedented high of $2.78. If Ripple can fulfill its predictions and secure 20% of SWIFT's transaction volume, this would be a turning point not only for the company but also for the entire cryptocurrency industry.
