XRP (XRP), the cryptocurrency associated with Ripple, experienced a noteworthy surge in price earlier this month, buoyed by a double dose of positive developments.
In particular, federal judge Analisa Torres’ rejection of the SEC’s appeal reinforced her earlier ruling that Ripple’s sale of XRP didn’t violate securities laws. Adding to the optimism, Ripple recently secured a full operational license in Singapore.
Although XRP has since retreated to the $0.50 mark, fresh positivity is again on the horizon.
Notably, it appears that cryptocurrency is emerging as a favored choice for cross-border payments and settlements in Mexico, potentially rekindling investor enthusiasm.
What happened?
According to a document on Banco de México’s official website, the central bank is planning to utilize one of Ripple’s liquidity solutions, a pivotal bridge between the US dollar (USD) and the Mexican peso (MXN).
Specifically, the document mentions xRapid – a Ripple product that uses XRP as a “bridge asset” that businesses and financial institutions can leverage as a bridge transfer between two different fiat currencies.
In this case, Mexico’s central bank is looking to utilize xRapid as a bridge mechanism between the USD and MXN.
“xRapid payments are fully settled in two minutes or less and reduce costs by 40-70%. This near-instant settlement is in contrast to cross-border payments in the traditional system that take three-to-five days to settle.”
– Banco de México wrote in the document.
What does this mean for XRP?
Naturally, Banco de México’s adoption of xRapid and its plan to use XRP as a bridge asset represents a major milestone for the cryptocurrency.
For years, Ripple has been aggressively promoting the scalability, speed, and low cost of XRP to global financial institutions. With Mexico’s central bank joining, XRP continues to prove its appeal as an asset with multiple use cases, beyond just cross-border transactions.
As more banks and financial institutions recognize XRP’s potential, the crypto token is a step closer to mainstream adoption.
If such developments continue without significant regulatory hurdles, the growing adoption of XRP means heightened institutional interest, potentially exerting substantial influence on the price of the token.
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