Here’s How High XRP Can Rise if Every Bank in Japan Start Using XRP

While speculations around potential XRP adoption by most banks in Japan remain unconfirmed, such a development could massively impact XRP.

Notably, due to its impressive features, several proponents have identified XRP’s potential to improve the traditional finance scene. Amid these discussions, speculation about its adoption by Japanese banks emerged.

But how realistic are these expectations, and what would it mean for XRP’s price if Japan’s banking sector integrated it to a certain extent?

Speculation of Widespread Adoption

SBI Holdings, one of Japan’s largest financial institutions, has been a major supporter of Ripple and XRP. The company has integrated Ripple’s technology into various financial services, particularly in cross-border payments. Its CEO, Yoshitaka Kitao, has also been optimistic about XRP’s role in banking.

Interestingly, reports have suggested that Kitao predicted up to 80% of Japanese banks would use XRP by 2025. These reports are built on previous articles from several crypto news sites years back.

However, no verified source confirms this claim, and there’s no record of Kitao making such a prediction. Instead, research from three industry pundits suggested that Ripple had partnered with 80% of the Japanese banking industry. Amid this, if XRP were ever widely adopted by Japanese banks, there could be a massive impact on its price.

The Japanese Banking System

For context, Japan has a massive financial ecosystem with trillions of dollars circulating daily. The country’s major banks, including Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, process billions in transactions regularly.

Currently, these banks rely on systems like SWIFT, which can be slow and expensive. If XRP replaced or supplemented these networks, it could reduce costs and increase efficiency. Such a move could drive demand for XRP, but the impact on prices would depend on the extent of adoption.

For context, Japan has a massive financial ecosystem with trillions of dollars circulating daily. The Bank of Japan manages the country’s economy, amounting to a $4.23 trillion GDP.

Meanwhile, the country’s major banks, including Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, process billions in transactions regularly. Specifically, Mitsubishi alone boasts 40 million retail customers, while Mizuho services about 24 million individual clients.

Potential XRP Price Targets

First, if major Japanese banks fully adopted XRP for remittances and settlements, trading volumes would surge. Most of Japan’s financial transactions could pass through the XRP Ledger (XRPL), boosting liquidity. According to the chatbot, this could push XRP’s price between $20 and $50.

However, if Japan led the way and other countries followed, XRP’s adoption could expand across Asia and beyond. Increased liquidity demand from multiple banking systems could drive XRP prices into the $50 to $100 range.

Meanwhile, ChatGPT also presented a scenario where XRP could witness full global adoption in the banking system, with central banks and financial institutions leveraging it for liquidity. The chatbot believes XRP could match SWIFT’s daily volume if this occurs, predicting a price surge to $100 – $500+.