Yesterday, XRP (XRP) pumped by over 10%, and led to an increase in positive sentiment across the market. This pump was largely driven by some big news coming from R3. R3 announced via twitter that SWIFT was integrating their SWIFT GPI with R3’s corda Settler.
Corda is an open source platform for seamless transactions. As per the R3 website,
Corda removes costly friction in business transactions by enabling institutions to transact directly using smart contracts, while ensuring the highest levels of privacy and security. From its inception, Corda was built specifically for business.
The excitement that this announcement elicited in the market is not unfounded. That’s because, one of the currencies that can be used to settle on the R3 Corda is XRP (XRP). This means that if SWIFT decides to settle payments using XRP on Corda, it would have a huge impact on the overall demand of XRP. That’s because, SWIFT has a near monopoly on the global banking industry, an industry that moves trillions of dollars a day across the globe.
In essence, if SWIFT were to use it, XRP would be used in settling cross-border payments all across the world by the entire banking industry. With such huge volumes and demand, the expectation is that the value of XRP would rise exponentially, hence the speculative pump that XRP saw yesterday. Such a move by SWIFT could easily see its value rise back to its all-time highs, and probably test new highs. In fact, if SWIFT were to use XRP on the R3 Corda Settler, XRP could easily rise to $10 or more within a very short time.
However, there is a flipside to it, and one that may not benefit XRP much. That side to things is the possibility that SWIFT might opt to settle in stable coins or digital fiat. The R3 Corda is currency agnostic, which means that settlements are not restricted to XRP (XRP). Up to this point, SWIFT has not sent any signals that they intend to settle in XRP (XRP). If anything, they are still cautious about cryptos.
Yesterday, during the Paris FinTech Forum, where the R3 announcement was made, the SWIFT CEO touched on the volatility of cryptocurrencies as a primary reason why they are not so keen on adopting them. As such, there is a good chance that SWIFT won’t be using XRP (XRP). This would mean that the whole excitement around the SWIFT-Corda news is nothing but speculative-based excitement.
Now that the R3 news is fully priced-in the market, how is XRP (XRP) likely to perform in the next 24-hours? From the charts, XRP (XRP) pumped yesterday, but failed to break above the key 200-day moving average at $0.345. This means that the pump didn’t draw in much volumes, to sustain that pump and turn into a bull rally. As such, XRP (XRP) has a high probability of being bearish in the next 24-hours. Nonetheless, the future of XRP (XRP) is bright. The number of institutions using XRapid are on the rise. That’s a sign of progress, in a fast changing market, where people are demanding faster payments,