Expert Says XRP Is Specifically Designed for Use By Banks, XRP Army Reacts

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Many digital assets were introduced to reduce reliance on traditional financial institutions. XRP, however, has long been presented as a cryptocurrency with a different objective.

Crypto researcher SMQKE recently reinforced the view, stating that “XRP is specifically designed for use by banks,” renewing discussion about the asset’s original purpose and its place within the global financial system.

The statement quickly prompted reactions from members of the XRP community, with some questioning whether banks have truly embraced the digital asset as others pointed to Ripple’s long-term institutional strategy.

SMQKE’s post focused on the idea that XRP was built to address inefficiencies in cross-border payments. The XRP Ledger enables transactions to settle within seconds while charging extremely low fees, making it significantly faster than traditional international payment systems that often require several days to complete transfers.

Supporters of XRP also noted that one of its primary advantages is its ability to provide on-demand liquidity. Rather than requiring banks to maintain large amounts of capital in foreign accounts to facilitate international payments, XRP can serve as a bridge asset, allowing funds to move between different currencies almost instantly. Ripple has promoted this approach as a way to reduce costs and improve capital efficiency for financial institutions.

Community Members Offer Different Perspectives

SMQKE’s post generated several responses that reflected different views on XRP’s relationship with banks.

Ripple’s Institutional Strategy Provides Context

While SMQKE’s tweet centered on XRP’s intended purpose, Ripple’s broader business strategy provides additional context for the discussion.

Ripple has spent years developing payment infrastructure for financial institutions, forming partnerships with banks and payment providers across multiple regions. The company has also continued expanding its regulatory footprint while introducing products tailored for institutional clients.

It is also important to distinguish Ripple from XRP. Financial institutions can use Ripple’s payment infrastructure without necessarily using XRP in every transaction. In addition, Ripple recently introduced RLUSD, its U.S. dollar-backed stablecoin, to serve institutions seeking blockchain-based settlement without exposure to cryptocurrency price fluctuations.

Although banks are not required to adopt XRP, supporters argue that the asset becomes particularly useful in payment corridors where liquidity is limited or expensive. From that perspective, SMQKE’s statement reflects the original design philosophy behind XRP, while actual adoption depends on each institution’s operational, regulatory, and commercial considerations.

Disclaimer*: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.*