In a typical cryptocurrency landscape, Ripple’s XRP is increasingly becoming a leading player in cross-border payments, with its focus on emerging markets. Ripple’s technology aims to help relieve the inefficiencies the exist in the traditional financial systems, particularly in regions where banking access or costs high.
Ripple’s focus on fast, low cost cross border payment solutions in emerging economies puts it in good stead to drive massive adoption of Ripple’s native cryptocurrency, XRP. Will this expansion result in substantial price growth of XRP by 2025? This article is about the XRP price prediction 2025 and wondering if Ripple’s strategic efforts to take XRP to emerging markets will propel the price upwards exponentially.
Ripple’s Mission in Emerging Markets
In its core mission, Ripple has always aimed to provide a more efficient and cheaper solution to cross-border transactions, a mission that rings true especially with emerging markets. In many developing countries, traditional banking systems are characterized by high transaction fees, long processing times and a lack of accessibility to many people of the population. These inefficiencies hinder individuals and businesses from playing a full part in the global economy.
International money transfers and remittances are a challenge for emerging markets such as regions in Africa, Southeast Asia and Latin America. For example, migrant workers sending money back to their families, small businesses with international trade and local financial institutions all suffer from the higher fees and longer transaction times. This is where RippleNet, a Ripple enterprise blockchain network, comes in: to solve these issues by facilitating instant, low cost cross-border payments using XRP as the bridge currency.
Ripple is building the infrastructure that will make its solution scalable by focusing on the expansion of RippleNet in emerging markets. The more institutions and remittance providers that adopt RippleNet, the more use case for XRP, and potentially the higher a price for XRP.
Expanding at Key Partnerships
Ripple has used its partnerships with financial institutions, mobile payment providers, remittance services, and other businesses to leverage its expansion strategy into emerging markets. Ripple’s key strength is the capacity to create partnerships that assist its payment solution get to the front of cross-border transactions.
As an example, Ripple partners with several remittance companies such as SBI Remit and MoneyGram (which parted ways after their lawsuit by the SEC), to provide faster and more affordable remittance services in markets where traditional banking is expensive or impractical. This solution allows those companies to settle their transactions quickly, without using pre-funded bank accounts, by using XRP as a bridge currency.
Moreover, Ripple has made partnerships with key financial institutions in Southeast Asia, like Siam Commercial Bank (SCB), Thailand and the National Bank of Egypt. Through these partnerships Ripple is able to integrate its payment solutions into existing financial infrastructure, thus massively promoting XRP in cross border payments. Ripple has been able to visually showcase how crypto can be helpful in emerging economies through these partnerships.
It is these partnerships in emerging markets which will be key to XRP’s price growth. RippleNet and XRP are being adopted by more and more financial institutions and remittance providers, and as demand rises it is likely that the crypto will appreciate in price by 2025.
XRP’s Utility for Cross-border Payments
XRP has a very useful role to play as a bridge currency in cross-border payments. The difference with Bitcoin, a store of value, or Ethereum, the powering of decentralized applications, is that XRP was engineered to enable fast, affordable, international transactions. It can bridge different fiat currencies to transfer the cross border transaction without multiple intermediaries and pre funded nostro accounts.
This use case is very relevant in emerging markets where it is very difficult to access traditional banking services. By decreasing costs and increasing the speed of transactions XRP can revolutionize how money moves from one side of the planet to another, especially in countries with significant dependence on remittances. Remittances to low and middle-income countries are estimated to reach more than $500 billion annually, and solutions like RippleNet that cut fees and speed up transaction times can expect a sizeable share of this market, according to the World Bank.
With the growth in RippleNet adoption, XRP turns out to be more useful as a bridge currency. As more transactions are processed using XRP, more of the token is demanded. XRP’s limited supply combined with its increased demand could make it to be an asset with very bullish development by 2025.
Issues Facing Regulatory Considerations
The case for a future solid XRP price growth is Ripple’s growing footprint in emerging markets. However, regulatory obstacles remain. Now embroiled in a high-profile legal battle with the U.S. Securities and Exchange Commission (SEC) over whether a particular token — XRP — should be deemed a security, Ripple is in an awkward spot. This case is going to have a profound impact on XRP’s price and Ripple’s business operations.
That being said, the legal fight in the U.S. hasn’t prevented Ripple from continuing to grow globally: It has primarily focused on markets outside the U.S., where regulatory clarity is better. In Africa, Southeast Asia, and the Middle East, where emerging markets have appeared more willing to adopt blockchain-based solutions, Ripple has an opportunity to become a leader in cross-border payments in these regions which could ultimately drive its price higher by 2025.
