XRP is emerging as a compelling contender for supporting cross-border payments, and the XRP community continues to explore its potential role in global finance. In a recent analysis shared by prominent commentator Pumpius, the discussion pivots to the price levels XRP might need to achieve to effectively facilitate settlements for central bank digital currencies (CBDCs) and foreign exchange (FX) on a global scale.
How XRP Could Fuel CBDC and FX Transactions
Pumpius, a widely-followed voice in the XRP community, outlined a vision where XRP serves as a backbone for settling massive financial transactions between nations and monetary systems. Under this scenario, XRP would need to process trillions of dollars in daily settlements efficiently and at scale. To maintain reasonable liquidity and support high-volume transactions, a significantly higher XRP valuation is essential.
According to Pumpius, if XRP were to support the global FX market—reportedly valued at around $7.5 trillion daily—it would need to be priced dramatically higher than its current rate. Specifically, he suggested that XRP could require a valuation of $100 or more to facilitate the required liquidity across global financial infrastructure efficiently.
Liquidity Constraints and Valuation Implications
The analysis brings up a crucial concept in cross-border finance: liquidity sufficiency. For XRP to handle high volumes of CBDC settlements or FX pairing seamlessly, its circulating supply must be able to accommodate large-value transfers without causing major slippage. This implies a direct correlation between required liquidity and token price.
Pumpius emphasized that with the total XRP supply capped at 100 billion tokens, the ability to manage trillions in transactions daily means each token needs to be worth significantly more. Without the sufficient token value, the network wouldn’t be able to sustain large-scale settlements without additional layers of friction or capital inefficiencies.
Analysts speculate that for XRP to serve global FX and CBDC settlements, its price would need to increase significantly.
XRP as a Bridge Currency: Aspirations vs. Current Reality
While XRP has been promoted by its backers and Ripple Labs as an ideal asset to bridge international financial systems, its price has not yet reached the thresholds proposed by analysts like Pumpius. As of now, XRP’s value remains well below the $100 mark. Adoption hurdles, regulatory scrutiny—particularly in regions like the United States—and competition from other blockchain-based settlement platforms continue to affect progress.
Nevertheless, the concept of XRP becoming a neutral bridge asset for CBDCs and FX is gaining intellectual traction. Proponents argue that a digital asset with no allegiance to any single nation or central bank could offer speed, transparency, and cost-efficiency to international payments that current legacy systems can’t match.
Market Potential and Forward Outlook
If even a fraction of global financial markets were to integrate XRP for daily settlements, this would involve rethinking global token valuations. Pumpius’s modeling, while speculative, adds to the broader industry conversation about the infrastructure needed for the future of money.
In summary, the potential for XRP to serve as the settlement layer in worldwide FX and CBDC transactions is hinged on a much higher price point—possibly in the triple digits. For this milestone to be realistic, key developments such as widespread institutional adoption, consistent regulatory clarity, and interoperability with traditional finance will be necessary milestones on the road to realization.
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