AI chatbots ChatGPT and Grok AI point out what they believe could be the ideal XRP prices for when banks decide to mass adopt XRP for ODL.
Notably, XRP, often called “the banker’s coin,” has been at the center of discussions around crypto’s potential to improve cross-border transactions. XRP boasts lower fees, greater security and higher speed, making it ideal for this utility.
XRP Ideal Choice for Cross-Border Transactions
As a result, blockchain payment firm Ripple already leverages XRP as a bridge currency for its On-Demand Liquidity (ODL) solution (now Ripple Payments). Despite this, some argue that banks and financial institutions could mass adopt XRP for cross-border payments with proper regulations in place.
However, questions about XRP’s ideal price for such large-scale adoption have emerged. Ripple’s Chief Technology Officer, David Schwartz, emphasized in 2017 that XRP cannot be “dirt cheap,” noting how a higher priced XRP would be more convenient for moving large volumes of funds.
It *can’t* be dirt cheap. That doesn’t make any sense. If XRP costs $1, they’d need a million XRP which would cost $1 million. If XRP cost a million dollars, they’d need one XRP which would, again, cost $1 million. 1/2
— David “JoelKatz” Schwartz (@JoelKatz) November 20, 2017
For instance, at XRP’s current price of $2.45, moving $100 million would require 40.8 million XRP. However, if XRP traded for $50, only 2 million tokens would be necessary. This illustrates the benefits of a higher valuation for mass adoption, but just how high XRP needs to rise remains a contentious topic.
While some say a $10,000 price is sufficient, AI chatbot Grok, in response to a question from the Common Sense Crypto account, stressed that XRP’s price needs to strike a balance.
Grok AI and ChatGPT Set Ideal XRP Price
Grok said the price should be high enough to provide sufficient liquidity but not so elevated as to disrupt market dynamics or reduce supply excessively. It speculated that $100 could be an appropriate starting point, with further price increases likely as more banks adopt XRP.
Meanwhile, ChatGPT presented a speculative analysis, citing potential global transaction volumes and liquidity demands. It presented different prices, assuming a scenario where $1 trillion is processed daily using XRP and 50 billion tokens are available for circulation.
If XRP traded for $50, about 20 billion tokens would be necessary daily to move $1 trillion, representing 40% of the circulating supply. A price of $100 would reduce the requirement to 10 billion XRP, while $1,000 would lower it further to just 1 billion tokens.
Notably, ChatGPT believes an XRP price of $100 to $1,000 could be sufficient to satiate the demand for moving larger volumes of funds, a demand that would come from mass adoption among banks.
XRP Price Projection ChatGPT
Interestingly, both AI models emphasized that higher prices would facilitate smoother operations by reducing the number of XRP necessary per transaction. Accordingly, this would minimize slippage and ensure the system remains liquid.
In addition, ChatGPT also pointed out that higher prices could attract more liquidity providers, and this could bolster stability and support the ecosystem. Additionally, it suggested that smaller transaction sizes in XRP terms, enabled by higher valuations, could address volatility concerns.
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