Why XRP price could rise to $1,000 if it replaces SWIFT

In the past months the The XRP rate struggle to get up. With a current value of $0.53, the digital coin is still far from the all-time high (ATH) of $3.40, which will be reached in 2018.

However, XRP’s potential is important, as Ripple’s ambition is to change the international payment market with a faster and more efficient alternative.

XRP vs SWIFT

SWIFT is currently the biggest player in cross-border payments. If so Ripple (XRP) manages to take over part of SWIFT’s trading volume, the price of the digital currency could rise significantly. XRP has already shown a lot of potential, mainly due to the fast and cost-effective transactions enabled by the XRP Ledger (XRPL).

SWIFT included currently over $5 trillion in transactions per day, which amounts to a whopping $1.25 quadrillion per year. Even if XRP only handled a small portion of this trading volume, the demand for XRP and the market capitalization of the coin would increase significantly.

XRP stock price history

If XRP manages to handle 5-10% of SWIFT’s daily transaction volume, the digital currency market capitalization could increase to as much as $10 trillion. This would result in a price of hundreds of dollars per token. In the extreme case, where XRP would completely replace SWIFT, prices of $1,000 per token would be possible, representing an increase of over 185,000%.

Challenges for XRP

However, to truly replace SWIFT, XRP must find wider adoption among financial institutions around the world. While the XRPL offers faster and cheaper transactions, SWIFT remains a strong established player with more than 11,000 member institutions and decades of built trust.

In addition, regulatory transparency, especially in the United States, is a major obstacle. Ripple is still embroiled in a legal battle with the US Securities and Exchange Commission (SEC).