Yesterday, Ripple announced that Saudi Arabia's national commercial bank will begin to use ripplenet in the fourth quarter. According to the ripple, NCB will use first ripplenet to connect customers in North America and Asia. Have a look at a part of the declaration below.
The bank will connect to financial institutions in North America and Asia for the first time, starting with Singapore. The launch of these two critical payments corridors outside the door provides immediate value to NCB customers – services in regions that they did not have access to previously
While this NCB move indicates the increasing adoption of chain technologies in the industry financially, the agreement of the NCB has wider geopolitical implications, which could open the doors for the adoption of the XRP (XRP). To understand why, it is important to take a step back and understand why SWIFT is dominant in cross-border payments. SWIFT is dominant because it is not only a payment system, but also an instrument to curb the flow of illegal money, especially money linked to terrorist financing.
Now back to the NCB, the Kingdom of Saudi Arabia is one of the US Allied keys in the fight against global terror. The fact that the country's largest bank is trying to rip technologies goes to show that ripple offers checks and balances on cash flows, in addition to its extremely efficient transactions. There is not a way in which a key ally in a highly volatile region would allow the integration of this technology into its systems if it had any crime loophole. Furthermore, when this system will be used for cross-border payments to and from North America. Basically, the adoption of ripplenet by a Saudi Arabia bank is a great victory for ripple and XRP, one that could accelerate the adoption of XRP worldwide .
It has the technological advantage of supporting it. All the banks that tested it gave positive feedback. Just recently, the Royal Bank of Canada has predicted that XRP could save more than 40% of banks in the cost of cross-border payments. With the political angle that is forming, as can be seen from its adoption in the KSA, it is not at all hypothetical to postulate that the mass adoption of the XRP is coming. The United States is still a key player in global affairs and would not allow an agreement like that of the NCB to be overcome if there were gaps. It is an impulse of confidence for other banks to move forward with this technology.
The future of XRP (XRP) is bright. With every day coming, XRP is moving forward to become the standard in cross-border payments. When this happens, its value will gradually increase, making maximums above $ 100 possible. It is a slow and gradual process that affects not only the technology itself, but also geopolitics. Do not forget that key global institutions such as the International Monetary Fund and the Federal Reserve are constantly talking about ripples. These are institutions that have a huge influence on the global financial system and are added to the growing influence of the ripple in the banking sector.