BlackSwan Capitalist Founder Versan Aljarrah shared a new insight into XRP’s design and function. The founder said XRP was never designed to be cheap, adding to the positive sentiment surrounding XRP.
XRP’s original design
In an X post, Versan Aljarrah raised an argument about the original design and functionality of XRP, the Ripple-backed coin.
He said XRP was originally designed to have a high price. The statement implies that the XRP price must climb higher to fulfill its role as a global bridge asset.
Aljarrah based his argument on the role of XRP in handling massive financial flows. This includes global debt, derivatives and liquidity for cross-border transactions.
To Aljarrah, a higher XRP price means fewer tokens are needed per transaction. He believes this will make the system scalable and efficient.
His perspective aligns with the idea that the XRP price must rise to match the scale of the markets it aims to serve.
He added that a high XRP price is not just driven by market hype but by its utility in enabling global financial systems.
Crucially, XRP primarily functions as a bridge asset for transferring value across borders and between financial institutions. Its primary use case is to streamline international money transfers, which are often slow and expensive due to legacy systems like SWIFT.
Therefore, as more institutions adopt XRP-based solutions, demand for the coin increases. Higher demand with a fixed supply naturally drives the price upward, a functional outcome of adoption.
Why XRP will remain relevant in global finance
Aljarrah explained in a YouTube video that the global financial system is currently being digitized at an unprecedented pace. According to Aljarrah, acquiring XRP means owning the technologies that will move all the world’s value in some way.
He pointed out that central banks are already tokenizing their debt on the XRP Ledger. Aljarrah likened investments in XRP to owning shares in the internet itself.
He also emphasized that owning XRP is not just an investment but a mindset. Aljarrah highlighted key roles of XRP, including eliminating the frictions of cross-border payments and providing instant liquidity.
He added that XRP scales for institutional needs, pointing out Ripple’s collaborations with financial institutions.
For instance, Ripple recently announced a major partnership with Franklin Templeton and DBS Bank to develop repo markets powered by stablecoins and tokenized collateral.
In another key update, Ripple entered a new partnership with Absa Bank to expand XRP adoption.
Source: https://u.today/xrp-never-designed-to-be-cheap-blackswan-capitalist-founder
