Ripple Study Shows XRP Is 10x Safer For International Payments

Ripple Study shows that XRP is about 10 times safer than fiat when it comes to international payments so in today’s XRP news today we take a closer look at the latest study.

A group of analysts at Ripple have gone through the numbers and did the math after conducting the study that shows that XRP is 10 times safer for making international payments. The team put it as one-tenth as volatile as fiat for cross-border transactions when compared.

The head of Global Institutional Markets at Ripple Breanne Madigan, explained on Twitter on Thursday to highlight this ‘’unfounded criticism’’ that the digital assets have been getting a lot lately regarding their volatility. SWIFT is now the international standard for cross-border payments and it is also among the oldest institutions that are archaic by technological standards.

International wire transfers that use the SWIFT system take up to 14 days to clear. The ripple study compares the wire transfer between US dollars and Mexican pesos with the XRP token as an intermediary. The study shows that XRP is only risky if you hold the cryptocurrency for a few hours between the transfers or when SWIFT reduces the time that is needed to clear the international wires.

Because the average transaction takes about 7 seconds to clear, SWIFT is unlikely to improve the processing time because it is not even an issue. Ripple’s CEO Brad Garlinghouse noted this question in an interview earlier in October where he said:

 “If you multiply 270,000 seconds [just over 3 days] in a low-volatility asset and you compare that to 3 or 4 seconds in a highly volatile asset like XRP, it turns out you are taking less volatility risk with an XRP transaction than you are with fiat.”

The volatility of Ripple’s XRP is a very interesting one. It is unusual because it is relatively stable for most of the time. However, anyone who has gotten deeper into crypto over the past two years can also tell you that it has many periods of crazy volatility. This, of course, is the point of the study which means that if you were forced to hold XRP for a few hours while making an exchange, the value can change.

However, the study noted:

 “Ultimately, the speed of an XRP transaction means that transaction partners are in and out of the digital asset so fast, there’s no need to hedge. The resulting risk is much lower with a digital asset.
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