Ripple’s XRP To Become Global Currency Says German VC Firm CEO
In a recent interview on the floor of the Frankfurt Stock Exchange, Oliver Michel, the CEO of Tokentus Investment AG, a prominent German Web3 venture capital firm, expressed that XRP is perfectly positioned to serve as a world reserve currency.
Its ability to provide liquidity for foreign exchange reserves, international transactions, investments, and global economic applications makes it well-positioned for this role.
XRP Solving Cross-Border Hassles
In a recent interview with Der Aktionar, Michel presented a compelling scenario, illustrating the challenges associated with traditional cross-border transactions, especially from Germany to the United States.
He explained the complications involved in converting euros to dollars through multiple banks, which takes a lot of time and money. However, to solve this, Michel highlighted that Ripple strategically developed a business concept around XRP to address these inefficiencies.
In one particular scenario, Michel described how the sender’s bank could convert euros into XRP at a low cost. Later the recipient’s bank would then quickly turn the XRP into dollars, making the whole process faster and cheaper.
XRP’s As a Global Currency
Delving further into the interview, Michel shared his perspective on the future role of XRP Ledger (XRPL) and Ripple’s On-Demand Liquidity (ODL), particularly in the context of the rising trend of central bank digital currencies (CBDCs). Michel also noted that central banks need to adopt digital currencies quickly.
Michel highlighted Ripple’s bridge technology as a crucial enabler for establishing connections between central banks. While there are other digital coins like JP Morgan’s, Michel believes being the first to offer such technology gives Ripple an advantage.
Michel expressed confidence that, given sufficient time and favorable developments from Ripple, XRP has the potential to emerge as the world reserve bridge currency.
