Despite its relatively low adoption in the US, XRP has continued to enjoy widespread adoption overseas in countries like Japan, Singapore, and others looking to incorporate cryptocurrencies into their economy. This time, France is rumored to be the latest country to have taken an interest in the token, per rumored reports.
France Could Adopt XRP For CBDC Endeavors
Rumors have been circulating recently that France’s Central Bank, Banque de France, is considering adopting XRP for its digital euro, according to Edward Farina, a prominent figure in the community. However, there is yet to be any official announcement from the country’s foremost bank.
It is worth mentioning that the bank isn’t new to the blockchain and crypto space. Between 2020 and 2021, Banque de France ran a pilot test of a Central Bank Digital Currency (CBDC) on a blockchain within the country’s debt market. As part of the experiment, participants traded securities and government bonds using CBDCs, which the bank supplied.
In June 2021, the central bank explored the feasibility of using its CBDC for cross-border payments when it collaborated with the Swiss crypto-focused bank SEBA to test a CBDC for stimulating the settlement and transfer of listed security.
Meanwhile, the Central Bank highlighted the token’s potential in a research paper “Implementation of real-time settlement for banks using decentralised ledger technology: policy and legal implications” in 2016. The paper noted the difficulties experienced in facilitating cross-border payment transactions using the traditional correspondent banking network and how XRP could solve this problem.
According to the bank, a token like XRP could be used as an intermediary asset to bridge any currency pair while using a decentralized ledger technology to facilitate these transactions – which is where Ripple’s on-demand liquidity and the XRPL come in.
Such development represents what Ripple’s CEO Brad Garlinghouse was referring to when he stated that the token could become the next bitcoin if his company, Ripple, solves huge financial problems like this.
Token price struggles against the bears | Source: XRPUSD on Tradingview.com
Fundamentals Aligning For Price Success
Despite some analysts predicting that the XRP price could further decline based on some technical analysis indicators, several fundamentals could potentially boost the token’s price. For one, XRP’s success seems to be majorly hinged on Ripple’s actions, and so far, the crypto company is undeniably forging ahead despite its legal battles.
Furthermore, XRP has gone beyond being touted as a solution to a global financial problem to being implemented in the global financial structure. Banks in Asia are already adopting the token to process cross-border payments and massively contributing to the impressive trading volume that the token records on a daily basis.
The token’s utility is bound to increase (especially in the US) as Ripple continues to land several blows to the SEC’s case against the crypto company. Ripple’s President Monica Lang had mentioned how Judge Analisa Torres’ ruling gave the company a much-needed boost to expand its services not just in the US but overseas.
In such a case, the XRP price could see an increase as a result of the rising adoption. However, it still remains to be seen if there is any substance to the rumors.
Featured image from Crypto News Flash, chart from Tradingview.com