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In a recent statement, Tokentus Investment AG CEO Oliver Michel emphasized that XRP has the potential to become the world’s reserve currency, citing its ability to enable fast, low-cost cross-border transactions. His remarks highlight Ripple’s expanding role in global finance and question whether central bank digital currencies (CBDCs) can compete with existing blockchain infrastructure.
Ripple Blockchain vs CBDCs: Competing Paths in Global Finance
Michel raised concerns about global banks prioritizing the development of CBDCs over creating a stable, efficient financial system. According to him, the banking sector may eventually have to rely on established platforms like Ripple’s blockchain, which already offers cross-border functionality at scale. Unlike CBDCs, which are still in experimental phases in many regions, XRP is already operational and improving existing transaction inefficiencies.
Michel stated, “When the time is right for Ripple, then it can definitely become the World Reserve Bridge Currency.” This confidence reflects broader sentiment in the blockchain sector that decentralized platforms may outpace slow-moving centralized digital currency initiatives.
XRP as a Neutral Bridge for Fiat and Digital Currencies
Ripple’s vision includes establishing XRP as a bridge asset that links various fiat currencies with digital counterparts. By doing so, XRP can serve as a neutral settlement mechanism, facilitating seamless cross-border payments across jurisdictions. The infrastructure already supports this, with Ripple’s continued efforts to coexist with SWIFT, rather than replace it, to ensure smoother global adoption.
This role as a bridge currency addresses one of the most pressing challenges in digital finance: interoperability. By offering a blockchain-based solution that’s both scalable and neutral, Ripple aims to position XRP as a viable standard for global financial settlements.
Also Read: XRP Hits New All-Time High at $3.65 — Can It Reach $5 or Even $10 in 2025?
Real-World Adoption of XRP Ledger Accelerates
In addition to its strategic roadmap, Ripple is also making tangible progress in adoption. Wellgistics Health, a Nasdaq-listed pharmaceutical startup, has integrated the XRP Ledger (XRPL) into its financial and operational processes. This move underscores how enterprise-level actors are beginning to recognize the utility and scalability of the Ripple ecosystem.
Such developments help XRP transition from a speculative asset into a functional part of real-world infrastructure, supporting Michel’s argument that the token is uniquely positioned to play a central role in global finance.
A Reserve Currency in the Making?
While the idea of XRP becoming the world’s reserve currency may seem bold, experts like Oliver Michel believe the groundwork is already being laid. With Ripple’s continued focus on solving cross-border payment issues and expanding blockchain infrastructure, XRP could emerge as a credible alternative to CBDCs — especially in a financial world that increasingly values speed, cost-efficiency, and interoperability.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
