XRP xrp

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XRP is a cryptocurrency developed by Ripple Labs to enable fast, low-cost international payments. It uses a consensus mechanism (not mining) to settle transactions in seconds, making it suitable for real-time currency transfers.

Ripple promotes XRP as a bridge asset for financial institutions, aiming to replace legacy systems like SWIFT. Its speed and efficiency have attracted some banks, though Ripple’s large XRP holdings raise decentralisation concerns.

XRP’s token utility lies primarily in its role as a bridge currency for cross-border payments. XRP is used to quickly convert between two different fiat currencies, eliminating the need for pre-funded accounts in foreign banks. This allows financial institutions and remittance providers to settle transactions in seconds with lower fees and reduced liquidity risk.

Outside of Ripple’s network, XRP can also be traded on exchanges, used for payments, or transferred between users like any other cryptocurrency, but its core utility remains focused on international value transfer.