BKCM CEO Brian Kelly, in an interview with CNBC, explained how he believes that investors are missing out on the cryptocurrency Ripple and its potential.
The cryptocurrency is designed to become a real-time settlement system, remittance network, as well as a currency exchange. This system benefits banks and major payments industries — utilizing the system could help banks to save up to 60 percent on money transfers made across the globe.
In the interview, the CEO of the investment firm claimed that the internal payments market’s size amounts to $155 tln. That would mean that to move the massive market, it would require for $31 bln.
One important advantage of utilizing the cryptocurrency is that it helps save reconciliation of Nostro accounts, which are foreign currency-dominated accounts safe kept by a bank in a separate country. The practice incurs costs just by merely maintaining these accounts. And, as Kelly explained, banks can do away with the costs through the use of Ripple ledger and XRP tokens instead of keeping foreign currency in accounts overseas.
Unfortunately, XRP prices took a significant fall since the beginning of 2018, in contrast with some cryptocurrencies which received significant boost especially this week. Despite the lack of the appreciation that it seemingly deserves, Kelly urges the crypto community to utilize both the tokens and the ledger framework so that the token will up in price.