The SEC lawsuit against Ripple has been a constant dark cloud hanging over the company’s growth efforts. However, this has not stopped Ripple from pursuing growth opportunities in various sectors.
Recent report suggests that Ripple is looking at growth through CBDCs and this may offer a favorable position with governments.
More importantly, it can propel XRP into its long-awaited growth phase.
In one of the most recent reports, Ripple revealed that it conducted a survey through which it sought to determine the opinion of financial leaders around the world on CBDCs.
📈 Over 70% of respondents polled in 5️⃣ global regions believe #CBDC is going to bring about significant social changes within the next 5 years.
Learn more about how CBDCs can drive financial inclusion. https://t.co/H8Tc5mqsWn
— Ripple (@Ripple) August 4, 2022
The report goes on to highlight some of the benefits that CBDC adoption can bring, such as faster transactions and financial inclusion.
Ripple is increasingly moving towards supporting CBDCs. The company plans to be a conduit or vehicle for the circulation of CBDC. The company already has one private CBDC ledger which he has promoted as an ideal solution for CBDC circulation.
Will Ripple’s CBDC Participation Affect XRP?
Ripple’s ODL services are ideal for fast cross-border transfers.
In a way, Ripple may end up being an efficient clearinghouse for the global banking system. If this plan succeeds, demand for XRP will be through the roof, positively impacting its price.
XRP gave a solid run towards the end of July and managed to briefly push above its resistance line.
However, it has since rebounded and is back in the support and resistance range. The press time price of $0.37 has teased the upside, but the lack of enough upside pressure means any gains have been limited.
Although Ripple’s plans for the CBDC segment look promising, its progress has been limited. This is likely due to the uncertainty surrounding the SEC lawsuit.
As a result, it has achieved negative network growth over the past four weeks.
XRP’s rally was also limited by profit-taking after small gains. That’s because investors are still wary of the lawsuit, so they’re focused on short-term gains. This is evidenced by the 30-day MVRV ratio and 30-day cap metrics.
XRP’s realized cap has been rising since late July, while the MVRV ratio has declined over the same period.
This confirms profit taking, thereby reducing unrealized profits as the price falls.
Ripple has an opportunity to capitalize on strong growth from its potential participation in CBDC circulation.
However, it is currently constrained by the long court battle with the SEC.
A favorable outcome of this lawsuit would have a positive impact on XRP. Meanwhile, if Ripple’s CBDC plans come to fruition, then it would ensure healthy long-term growth for XRP.