The SEC lawsuit against Ripple has been a dark cloud over the company’s attempts to grow. However, this has not stopped Ripple from pursuing growth opportunities in various fields.
recent Report Showing that Ripple is focusing on growth with a CBDC could provide the government with a strong position.
More importantly, it could propel XRP into its long-awaited growth phase.
In a new report, Ripple revealed that it conducted a survey through which it sought to determine how global financial leaders feel about CBDCs.
📈 More than 70% of respondents in 5️⃣ regions around the world believe that #CBDC Significant social change will be achieved in 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 possible benefits of CBDC adoption, such as faster transactions and financial inclusion.
Ripple is increasingly turning to support CBDCs. The company plans to be a channel or medium for the launch of the CBDC.The company already has a Private CBDC ledger It has been marketing it as the ideal solution for a CBDC launch.
Will Ripple’s CBDC Participation Affect XRP?
Ripple’s ODL service is ideal for fast cross-border transfers.
In a way, Ripple may end up being an efficient clearinghouse for the global banking system. If the plan is successful, demand for XRP will peak, positively affecting its price action.
XRP achieved a strong bull run at the end of July and managed to break above the resistance line.
However, it has since retraced back into support and resistance range. Its $0.37 price at press time has been mocking gains, but the lack of sufficient bullish pressure means any gains are limited.
While Ripple’s plans for the CBDC space seem promising, progress has been limited. This may be due to the uncertainty of the SEC lawsuit.
As a result, it has seen negative network growth over the past four weeks.
XRP’s upside was also limited by profit-taking following the small gains. That’s because investors remain wary of lawsuits and therefore focus on short-term gains. This is evidenced by the 30-day MVRV ratio and 30-day realized cap metrics.
XRP’s realized cap has been increasing since the end of July, while the MVRV ratio has declined over the same period.
This confirmed profit-taking, which drove down unrealized profits as prices fell.
Ripple has an opportunity to capitalize on the strong growth in its potential participation in CBDC rollouts.
However, it is currently limited by a lengthy court battle with the SEC.
A favorable conclusion of the lawsuit will have a positive impact on XRP. At the same time, if Ripple’s CBDC plans come to fruition, it will ensure XRP’s healthy long-term growth.