As the level of digitalization globally is increasingly going up, Ripple catches the high wave and goes on with propagating a worldwide adoption of secure low-cost transactions that are delivered rapidly on a receiver’s account. This is what Ripple’s On-Demand Liquidity (ODL) service which uses the digital asset XRP to source liquidity in essence; while keeping the costs down, it brings significant benefits to cross-border payments which are usually heavy and time-consuming.
A higher level of volatility will make a post-pandemic world a tough place to linger. Traditional currencies show a level of volatility long not seen before, which puts many assets under risk, especially the ones stored on saving accounts. Ripple came with a solution to this problem by preceding accounts which do not require any funding beforehand, and which can be used globally within a single system.
While expanding a range of supported currency pairs (now USD-MXN, USD-PHP, AUD-USD, and PHP, EUR-USD will also be available, as Ripple’s senior vice president of product management and corporate development Asheesh Birla states in an official communication), the company now hopes to attract more SMEs and other individuals/businesses who are feeling the effect of the pandemic. The world has entered a new digital realm, Ripple says, where the need for effortless instant payments and cross-border transactions will now be a part of a new ‘norm’.
By prioritizing SMEs over larger conglomerates, Ripple hopes to achieve scalability and seize the opportunity of engaging smaller businesses to become a part of the RippleNet payment network. This, in the face of global post-pandemic recovery, could be a way to take Ripple one step further in its adoption worldwide.
Asheesh Birla expressed in his tweet that he also sees it as a good opportunity for the expansion of Ripple ODL services in the fields of e-commerce on the top of traditional payments:
When we first conceived the idea for ODL, we identified low-value, high volume payments as the sweet spot where customers would see the greatest value in time and money saved using XRP. These often translate to remittance, e-commerce and SME payments. (1/2) https://t.co/twlQEyok75
— Asheesh Birla (@ashgoblue) June 8, 2020
On top of this, Ripple was recently described as a suitable means for arbitrage trading. Using the ability of XRP to move funds between accounts within seconds, traders could take advantage of this opportunity by playing on the small price differences between exchanges.
This could make Ripple attractive for individuals too and thus increase their involvement in formerly pure business-oriented payment networks. This again proves a wide range of Ripple applications, which go beyond a distributed ledger-based payment processing system in an effort to become the world’s most scalable digital asset.
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