BIS Prototype Suggests Institutional Use of XRP Ledger May Not Reduce XRP Supply
(46 days ago) · 1 source · Summarized by CryptoBipto
A Bank for International Settlements (BIS) prototype demonstrates how institutional adoption on the XRP Ledger could function without creating significant demand pressure on the XRP token itself. The project illustrates that institutions may use the ledger's technology without necessarily holding or consuming large amounts of XRP, challenging a common expectation among retail holders.
WHY IT MATTERS
Think of the XRP Ledger like a highway system, and XRP (the token) like a specific brand of fuel. Some investors assumed that if big banks and institutions started using the highway, they would all need to buy that specific fuel, making it scarce and potentially more valuable. This BIS prototype suggests institutions might be able to drive on the highway using a different kind of fuel — or very little fuel at all. For beginners, this is an important lesson: a blockchain (the technology) and its native token (the cryptocurrency) are related but separate things. Adoption of the technology does not always mean the token will see increased demand. The BIS, which coordinates policies among the world's central banks, carries significant weight in global finance, making its research particularly noteworthy.
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