A veteran investor’s bold statement about XRP has brought a familiar crypto debate back to the forefront: can a token designed for fast payments ever surpass the original digital store of value?
According to posts on X by long-time Bitcoin supporter Pumpius, if central banks adopt a single on-chain bridge currency, XRP could surpass Bitcoin “by a huge margin.”
Market Moves and Policy Concerns
Recent market activity has drawn attention from both policymakers and traders. For instance, the Federal Reserve’s trading desk sought quotes for the dollar/yen pair following a sharp move in the yen’s value—a step requested by Treasury officials. This unusual check highlights how currency volatility can push authorities to explore new tools, reviving discussions about faster settlement systems.
Ripple’s Outlook and Institutional Interest
Based on company reports and executive comments, Ripple’s leadership views 2026 as a potential turning point when larger, regulated institutions might begin deploying significant capital on the XRP Ledger. Ripple President Monica Long has outlined scenarios where banks and asset managers operate systems connected to on-chain liquidity pools. These perspectives have been widely reported in crypto media, adding momentum to optimistic forecasts.
How a Bridge Asset Could Function
The concept involves having dollar and euro liquidity available on a ledger for nearly instant swaps. In practice, this could use permissioned liquidity pools and regulated stablecoins as the infrastructure, with an on-chain order book facilitating the trades. Settlement would take seconds, with automatic audit trails. However, large institutions prioritize rules and oversight, meaning any major rollout would be slow and careful.
XRP vs. Bitcoin: The Scale of the Challenge
The numbers are stark. Bitcoin’s market capitalization is in the trillions, while XRP’s market value remains under $100 billion, depending on the source. This is a massive gap. For XRP to “flip” Bitcoin at current valuations would require trillions more in capital flowing into the token—a shift likely needing widespread institutional adoption and clear regulatory frameworks.
Geopolitical Factors
Geopolitical tensions and trade disputes, often intensified by leaders’ statements or decisions, can create market uncertainty. For example, former US President Donald Trump has been cited in debates over policy changes and geopolitical risk, which influence capital movements and demand for safe-haven assets. While political turbulence can make technical solutions like faster settlement seem more appealing in theory, real-world adoption is a separate challenge.
Frequently Asked Questions
FAQs XRP as a Key Asset for Central Banks
BeginnerLevel Questions
What is XRP and how is it different from Bitcoin
XRP is a digital asset and the native cryptocurrency of the Ripple network designed primarily for fast lowcost crossborder payments Unlike Bitcoin which was created as a decentralized digital gold XRP is often associated with facilitating transactions between financial institutions
Why are people talking about central banks using XRP
Some analysts suggest that central banks could use XRP or its underlying technology for things like crossborder settlements or launching their own digital currencies because of its speed low cost and existing relationships with banks through Ripples products
Could XRP really become more important than Bitcoin
Its a matter of purpose Bitcoin is primarily seen as a store of value or investment asset XRP aims to be a bridge currency for payments It could surpass Bitcoin in usage for institutional transactions if widely adopted by banks and central banks but likely not as a dominant public investment or digital gold
Isnt Bitcoin the biggest cryptocurrency Why consider anything else
Yes Bitcoin has the largest market cap and brand recognition But for specific tasks like settling international payments in seconds for fractions of a cent different technologies have different strengths Central banks have practical needs where speed and cost matter more than Bitcoins decentralized mining model
Is XRP the same as Ripple
No Ripple is a private technology company that develops payment solutions XRP is the independent digital asset used on the opensource XRP Ledger Ripple holds a large amount of XRP and uses it in some of its products but they are separate entities
Advanced Practical Questions
What specific benefits would a central bank gain by using XRP
Potential benefits include 1 Liquidity Access Using XRP as a bridge asset could reduce the need to prefund accounts in foreign currencies 2 Settlement Speed Transactions settle in 35 seconds 3 Cost Reduction Drastically lower fees compared to traditional correspondent banking 4 Transparency All transactions are recorded on a public immutable ledger
What are the biggest hurdles stopping central bank adoption of XRP
Major hurdles include