World Bank classifies XRP as a stablecoin
San Francisco-based Ripple Labs Inc. has emerged as a prominent player in the crypto market. The World Bank has now validated the associated cryptocurrency XRP as a stablecoin for lightning transfers.
XRP as a stablecoin
This recognition, described in a research paper titled “Central Bank Digital Currencies for Cross-Border Payments,” highlights Ripple’s growing influence and XRP’s utility in the global payments ecosystem.
The research paper highlights the need for efficient and cost-effective cross-border payments and recognizes stablecoins as a digital currency category that offers instant processing and secure transactions.
With a focus on stability compared to fiat currencies, the World Bank identified XRP, along with the Stellar network’s native asset, XLM, as virtual assets that fit into the category of stablecoins. Additionally, the report highlights that XRP and XLM enable faster and more efficient cross-border payments compared to traditional correspondent banks, underscoring their utility and potential impact on the global financial ecosystem.
Following the World Bank’s classification, discussions within the crypto community have focused on the implications for the future of Ripple and XRP. In particular, Ripple’s former director of global talent acquisition, Sean McBride, drew attention to the World Bank’s rating , amid speculation about Ripple’s possible issuance of its own stablecoin.
McBride chatted with well-known XRP community figure WrathofKahneman, who speculated on the possibility of Ripple integrating stablecoin functionality via Automated Market Makers (AMMs).
Discussions within the community remain speculative, with varying perspectives on XRP’s stability and possible use cases.
XRP price analysis and outlook
Despite these debates, XRP’s market performance remains robust. At the time of writing, XRP is trading at $0.5523 with a market cap of $30.1 billion. Notably, XRP recorded a 5.6% increase last week, joining the altcoin rally.
Market analysts like Elodie have expressed optimism about the future of XRP , citing technical indicators such as the falling wedge pattern on the 6-hour chart, which often precedes bullish momentum.
Elodie has identified key price targets for XRP in the short to medium term, with the potential for a breakout beyond current levels. Targets include $0.5557, $0.6237 and even $0.6957, representing significant profit potential from the current position.
Other analysts, such as JayDee, also foresee significant growth for XRP soon, predicting an increase of up to 650 times its current value. Such a rise could push the price of XRP up to $357.24 per coin.
Looking ahead, Ripple’s rise to the top looks set to continue as it expands its reach worldwide and solidifies its position in the global payments industry. With XRP’s designation as a stablecoin by the World Bank and ongoing efforts to improve its technology and partnerships , Ripple is well positioned in the global market.
