The SEC lawsuit against Ripple has always clouded the company’s growth attempts.
A recent report suggests that Ripple is aiming for growth through CBDC, which could provide a favorable position for the government.
More importantly, XRP could enter its long-awaited growth phase.
In one of its latest reports, Ripple revealed that it conducted a survey to find out what financial leaders around the world think about CBDC.
📈 More than 70% of respondents surveyed in 5️⃣ regions of the world said #CBDC We are in a position to bring about significant social change within the next five years.
Learn more about how CBDCs can drive financial inclusion. https://t.co/H8Tc5mqsWn
— Ripple (@Ripple) August 4, 2022
The report highlights some of the benefits that CBDC adoption could bring. For example, faster transactions and financial inclusion.
Ripple is leaning more and more towards supporting CBDC. The company plans to become a conduit or vehicle for CBDC deployment. The company already has a private CBDC ledger and touts it as an ideal solution for CBDC rollouts.
Will Ripple’s CBDC involvement affect XRP?
Ripple’s ODL service is perfect for fast cross-border money transfers.
In some ways, Ripple could become an efficient clearing house for the global banking system. If this plan succeeds, demand for XRP will go through the roof, positively impacting price action.
Towards the end of July, XRP recorded a solid bull market, briefly above the resistance line.
However, it has since turned down and is back within the support and resistance range. The $0.37 press price is on the upside, but the lack of sufficient bullish pressure will limit the upside.
Ripple’s plans for the CBDC segment look promising, but progress has been limited. This is likely due to the uncertainty surrounding the SEC litigation.
As a result, the network has experienced negative growth in the last four weeks.
XRP’s rise has also been capped by profit-taking after small gains. This is illustrated by his 30-day MVRV ratio and 30-day realized cap index.
The realization cap of XRP has been increasing since the end of July, and the MVRV ratio has fallen during the same period.
This confirms profit taking and pushes down unrealized gains as the price falls.
Ripple has an opportunity to capitalize on robust growth from its potential involvement in the rollout of CBDC.
However, it is currently limited by a lengthy legal battle with the SEC.
A favorable conclusion to this lawsuit would have a positive impact on XRP. On the other hand, if Ripple’s CBDC plans come to fruition, it will ensure XRP’s long-term healthy growth.