Highlighting the considerable limits of traditional banking systems, a former banker has placed XRP at the top of payment services in the financial sector, predicting that cryptocurrency will disrupt the payments industry.
Bold XRP Prediction By Financial Expert
In a rather lengthy X (formerly Twitter) post, ex-banker and financial expert, Kyren made a controversial prediction about the future of XRP in the payments industry. Kyren suggested that the token and a few other cryptocurrencies, will “disrupt” the traditional payments industry.
🏦I worked in banking for 4 years
Not the longest by any means, but more than enough to see the issues with legacy finance
• Process Payments
• Execute Payment Ledgers
• Maintain Accounts/BalancingHeres why I think $XRP & $XLM etc will DISRUPT payments
As we all know,… pic.twitter.com/1jmV5OyhJQ
— Kyren (@noBScrypto) October 4, 2023
Kyren, a banker with four years of expert experience in the financial sector has been a vocal advocate of cryptocurrencies on X since he departed from the banking world. The crypto enthusiast believes that XRP’s unique features and high value as a digital cross-border payment system would effectively transform the financial sector, pushing past the industry’s limits and issues of centralization.
The modern banking system has long been plagued by sluggish transaction processes and exorbitant fees, and Kyren strongly criticized this flaw in traditional banking systems in his post, stating that XRP would become the solution to these problems. He highlighted XRP’s ability to perform transactions at high speeds with costs as low as a fraction of a cent. He also stated the importance of transparency through blockchain technology.
“As we all know, legacy banking is incredibly slow & inefficient. International payments can take up to 2 days with costs sometimes adding up to $50 or a significant %.”
He added that “we know that with $XRP & $XLM, we now have the ability to send value of any kind globally & receive it in seconds. All while costing less than a fraction of a cent in fees.”
Kyren stated that XRP would play a pivotal role in rendering Payment Service Providers (PSPs) and Nostro accounts obsolete. He also said that the token will help facilitate cross-border payments without the need for intermediaries like PayPal.
Token looks strong above $0.52 | Source: XRPUSD on Tradingview.com
Current Landscape Of Cross-Border Payments
Efficiently processing payments internationally has been a common issue for traditional banking systems globally as international transfers are less digitized and lack transparency. They also have stringent legal regulations and taxation which can lead to high transaction fees. Another primary concern is the currency conversion fees which incur unfavorable exchange rates.
Cryptocurrencies, on the other hand, enable peer-to-peer transactions with minimal costs and less hassle. Although the regulatory framework of digital currencies has not been fully developed, the cryptocurrency industry has to some degree effectively transformed the payment industry.
Countries like El Salvador, Brazil, and Ukraine have already adopted cryptocurrencies to integrate blockchain technology into their payment systems.
Earlier in July, Ripple’s Chief Legal Officer was enthusiastic about XRP’s ability to facilitate cross-border transactions in the United States. Presently, Ripple offers cryptocurrency services in over 50 countries including Singapore, Europe, Japan, and others.
The increasing adoption of XRP and other cryptocurrencies underscores the disruptive potential of blockchain technology in the finance industry. As the digital economy grows, the role of cryptocurrency in improving global transactions may become more prominent in the future.