Ripple Reality Check: XRP Adoption by Banks Remains Limited
Despite years of promises, most banks use Ripple's technology, but not the XRP token itself.
The actual adoption of cryptocurrency token XRP by banks falls significantly short of what many investors assume. While Ripple has built a respectable network of financial institutions, most partners rely solely on the company's infrastructure and software – without using XRP itself.
Within the Ripple community, the thesis has been propagated for years that hundreds of banks worldwide use XRP for international payments. However, this portrayal does not reflect reality. While numerous financial institutions do work with Ripple, direct use of the XRP token remains limited to a few exceptions.
The oversimplified formula used by many XRP enthusiasts on social media and forums – "Banks work with Ripple, therefore they use XRP" – proves misleading upon closer examination. Most financial institutions do not directly use the token and limit themselves to using Ripple's technology for their payment processing.
For investors, this means that the often-invoked bank adoption of XRP is considerably more limited than communicated in marketing materials [1].
Sources
- [1]btc-echo.de
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