In March this year, Federal Bank Limited, India’s largest private commercial bank with an 8 million customer base, entered into a partnership with Ripple for faster and safer cross-border operations.
According to the business document of the Federal Bank, the financial institution will not only connect to unexplored corridors but go live on the platform by the end of this year.
— Yannleroi (@Yannleroi2) October 29, 2019
India Might Be The Reason For The Next Bull Run Of XRP
Why will the price rise sharply in a few hours? The bank is ready to launch the new decision, but to empower the Ripple system, it will be necessary to guarantee the most financial organizations that support RippleNet concurrently “switch” to this tech too. For this XRP itself must be rated at a higher price so that procced stable and speedy transactions.
Tokenization is like another underestimated thing about the use of XRP. To date, we do not quite understand all the use cases that the token has. But tokenization is able to completely transform the world economy and to raise it to another higher level.
As the Federal Bank goes live on the Ripple platform, more than 15% of all payments in India will be made through the system of the digital solutions provider. Thus, all customers of the bank will use this solution and raise the adoption of technology and the Ripple’s token as a whole.
Banks Will Not Use xRapid If They Use xCurrent
It is believed that banks using xRapid will not use xCurrent. This is very common among XRP critics, but it is completely false. To explain why we must determine xCurrent and xRapid conceptions.
xRapid manages XRP for the liquidity operations within seconds, eliminating the need for a Nostro. Therefore, xRapid allows financial organizations to transfer money instantly. To achieve this, it is necessary to buy Ripple’s token and sell Ripple token, following the principles of demand.
xCurrent, on the other hand, is a tool for operations of financial organizations. We can compare xCurrent to Swift. This is just a two-way form of ILP for settlements between a couple of bank accounts in real time but requires the retention of capital in the accounts of Nostro-Vostro.
This does not solve the liquidity problem that financial organizations have today. xCurrent does not use XRP today, but xCurrent 4.0, which is a more innovative variant of the system uses XRP. Banks that are currently using xCurrent will be able to use any of the solutions, which allows them to use xCurrent with XRP when they will be ready.
In this regard, the rate of XRP will increase sharply. And the Federal Bank will be able to set an example to its other competitors. When banks start using XRP as a liquidity and settlement tool for transfers, this will lead to a sharp increase in volume and an increase in demand for XRP. And, as you know, the higher the demand, the faster the value of the product rises.