- The United Nations (UN) is reported to have endorsed Ripple and Stellar as crucial elements in the global payment network.
- A video shared on X outlines a three-phase model for the future global payment system to harmonize the existing networks.
Amid the reports that the global payment revenue pool could reach $2.2 trillion by 2027 with a compound annual growth rate (CAGR) of 6.2%, Ripple (XRP) and Stellar Lumens (XLM) have received major endorsement in a video report by the United Nations (UN). In the video shared by a prominent crypto figure known as JackTheRippler, a three-phase model was outlined as a key approach to integrating global payment networks.
BOOOOOOOOOOOOOOOOOOM!!!
UN Endorses @Ripple and @StellarOrg as Cornerstones of New Global Payments Network! #XRP and #XLM will run the new financial system! pic.twitter.com/ufewexCKmR— JackTheRippler © (@RippleXrpie) October 13, 2024
According to our analysis of the video, Ripple and Stellar were highlighted as an integral part of this future payment structure. The speaker in the video clarified that the proposed integration would not be an entirely new system. Instead, this would be an effective method to connect existing networks such as Swift, Visa, Mastercard, Ripple, Stellar, and Celo.
The first phase of this model would see the creation of a globally distributed directory to resolve proxy identifiers. This implies that cross-border payments could seamlessly be enabled without the need to store sensitive data. Throwing more light on this, this concept was likened to the “modus operandi” of email addresses where payment systems are set up to communicate effectively and securely regardless of the underlying network. This phase is labeled as the “account addressing.”
The Remaining Phases and the Potential Impact of the Ripple and Stellar Lumens Integration
The second phase, which is termed tokenized compliance, would unveil a signed token. According to the information, trusted compliant providers would issue these tokens to reduce cost, and improve the efficiency of cross-border transactions.
The final phase would be “instant clearing and settlement.” According to the report, this phase would ensure that the real-time or near-real-time settlement of cross-border funds is enabled. To achieve its purpose, it would rely on the power of distributed ledger technologies (DLTs) or Central Bank Digital Currency (CBDC). This would ensure that liquidity and overall transaction efficiency are significantly improved to drastically reduce settlement time from days to seconds.
This development has been embraced by the crypto community with an X user identified as Annie expressing her excitement:
This news will undoubtedly have a positive impact on the prospects of XRP and XLM, potentially attracting more investors and partners.
According to experts, the potential of Ripple and Stellar Lumens is massive. However, it is just a matter of time to see whether these technologies will be quickly integrated into the existing financial system. Amid the backdrop of these developments, Ripple’s XRP has shown a strong bullish resilience against the recent market headwind to reverse its move into the $0.55 territory. Similarly, XLM has staged a 7% surge in the last seven days to trade at $0.095 at press time.
Meanwhile, analysts remain bullish on both assets. Recently, we reported on an extensive analysis by crypto trader Alan Santana which predicted that XLM could hit $2 by the end of this cycle.
Here is an excerpt of his analysis:
The fact that the pair bottomed before the rest of the market and didn’t produce a new low in August can be an early signal indicating that the bottom is in. Also, the fact that it went green on that date can tell us that this pair is likely to grow when Bitcoin drops or starts its bullish wave early in the least.
Recommended for you:
Credit: Source link
