The SEC’s lawsuit against Ripple has been a persistent dark cloud hovering over the company’s attempts to grow. However, this has not prevented Ripple from pursuing growth opportunities in various sectors.
newly Report It indicates that Ripple is looking to grow with CBDCs and this may provide a favorable position with governments.
More importantly, it could push XRP into its long-awaited growth phase.
In a recent report, Ripple revealed that it conducted a survey that sought to determine what finance leaders around the world think of digital central bank currencies.
📈 More than 70% of survey respondents across 5 global regions believe #CBDCs Stand to achieve major social change within the next five years.
Learn more about how central bank digital currencies are driving financial inclusion. https://t.co/H8Tc5mqsWn
– Ripple (@Ripple) August 4, 2022
The report goes on to highlight some of the benefits that central bank digital currency adoption may provide, such as faster transactions and financial inclusion.
Ripple has increasingly pivoted towards supporting CBDCs. The company plans to be a conduit or broker for the launch of a CBDC. The company already has CBDC private ledger Marketed as an ideal solution for a CBDC offering.
Will Ripple’s CBDC Participation Affect XRP?
Ripple’s ODL services are ideally suited for fast cross-border transfers.
In a way, Ripple may end up being an effective clearinghouse for the global banking system. If this plan succeeds, the demand for XRP will be through the roof, thus positively affecting price action.
XRP presented a strong uptrend at the end of July and managed to push briefly above its resistance line.
However, it has since rebounded and returned within the support and resistance range. Its price at $0.37 at press time was disturbing the upside but the lack of enough upward pressure meant that any gains were limited.
Although Ripple’s plans for the CBDC sector look promising, its progress has been limited. This is likely due to the uncertainty about the SEC’s lawsuit.
As a result, it has experienced negative network growth in the past four weeks.
XRP’s upside was also limited by profit taking after minor gains. This is because investors remain cautious about the lawsuit, and thus focus on short-term gains. This is evidenced by the 30-day MVRV ratio and the 30-day maximum achieved measures.
The maximum achieved for XRP has increased since the end of July while the MVRV ratio has decreased over the same period.
This confirms profit taking, which results in lower unrealized profits as the price falls.
Ripple has an opportunity to benefit from strong growth from its potential participation in CBDC launches.
However, he is currently tied to a lengthy court battle with the Securities and Exchange Commission.
The positive outcome of this lawsuit will have a positive impact on XRP. Meanwhile, if Ripple’s cryptocurrency plans begin to bear fruit, it will ensure healthy long-term growth for XRP.