CEO of a German VC Firm Predicts Ripple’s XRP Will Emerge as a Global Currency
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Key Points:
– CEO of German VC firm, Oliver Michel, believes that XRP is well-positioned to become a global reserve currency.
– XRP’s ability to streamline cross-border transactions and provide liquidity for international transactions and investments makes it suitable for this role.
– Michel emphasizes the importance of central banks adopting digital currencies quickly.
– Ripple’s bridge technology is seen as a crucial enabler for connecting central banks, giving XRP an advantage over other digital coins.
The CEO of Tokentus Investment AG, Oliver Michel, a prominent German Web3 venture capital firm, recently stated in an interview on the floor of the Frankfurt Stock Exchange that XRP has the potential to serve as a world reserve currency. Michel believes that XRP’s ability to provide liquidity for foreign exchange reserves, international transactions, investments, and global economic applications makes it perfectly positioned for this role.
In the interview with Der Aktionar, Michel presented a scenario highlighting the challenges associated with traditional cross-border transactions, specifically from Germany to the United States. He explained the complexities involved in converting euros to dollars through multiple banks, which is both time-consuming and expensive. However, Michel pointed out that Ripple has strategically developed a business concept around XRP to address these inefficiencies.
Michel described a situation where the sender’s bank could convert euros into XRP at a low cost. The recipient’s bank could then quickly convert the XRP into dollars, making the entire process faster and more cost-effective.
Delving deeper into the interview, Michel shared his perspective on the future role of XRP Ledger (XRPL) and Ripple’s On-Demand Liquidity (ODL), particularly in relation to the increasing trend of central bank digital currencies (CBDCs). Michel emphasized the need for central banks to adopt digital currencies quickly.
Michel highlighted Ripple’s bridge technology as a crucial factor in establishing connections between central banks. While there are other digital coins like JP Morgan’s, Michel believes that Ripple’s advantage lies in being the first to offer such technology.
Michel expressed confidence that, given enough time and favorable developments from Ripple, XRP has the potential to emerge as the world’s reserve bridge currency.