• The blockchain payment company has identified loopholes in most markets that small enterprises are locked out of financial and banking services amid high interest rates and siloed cross-border solutions.
• Ripple recently noted that cross-border payments volume has reclaimed pre-pandemic levels but the high and rising interest rates pose a direct threat to present and future growth.

The global economic outlook and the cross-border volumes have undeniably stabilized since the reopening of international borders after the COVID-19 pandemic devasted most countries for two years. The global supply chain management systems have significantly peaked with most airlines reporting a notable rise in customer reservations. As a result, American multinational blockchain payment company, Ripple has increased its efforts to reduce the overall friction in cross-border transfers through the use of XRP.

Ripple Offers Solution to Challenges of Rising Interest Rates on Global Businesses

According to Ripple in a recent blog post, its tailored crypto-enabled cross-border payment solution will significantly help global businesses overcome challenges caused by the higher interest rates. Moreover, central banks from leading global economies have issued a notice that they will keep the base interest rates high and possibly increase over time in a bid to tame the high inflation.

For instance, the United States Federal Reserve has in the past year constantly increased the interest rates to about 5.25 percent and 5.50 percent, with top leaders highlighting that it may remain high through 2016.

As a result, Ripple identified that the rising interest rates have led to higher currency fluctuations, which is a recipe for unpredictable transaction costs. With small businesses struggling to raise liquidity for operations amid economic uncertainties, Ripple noted that it is prudent for investors to diversify their business portfolios including offering new products and enhancing cross-border payments with emerging technologies to reach more markets.

Another major challenge caused by high-interest rates is reduced liquidity and costly credits. As central banks tighten their monetary policies to combat the high inflation, Ripple noted that small businesses are mostly left out of credit solutions amid expensive cross-border transaction expenses. Ripple noted.

“Taking on these increases in fees then, coupled with an overall lack of liquidity, can make for stringent cash management and increased operational overhead,”

Lastly, Ripple noted that high-interest rates create an imbalance in access to financial services. With banking across borders, slow, expensive, and prone to errors Ripple noted that blockchain has proven to be the best alternative for reliable global payments. Moreover, business owners can access greater working capital with reduced pre-funding requirements and upfront pricing with Ripple’s payment solutions.

 XRP and the Market Outlook

With Ripple’s continued expansion of its cross-border payment solutions, the overall trading volume in XRP has significantly improved. According to our latest crypto market data, XRP traded around 50- cents on Thursday, with a trading volume of about $828 million. According to market experts, XRP price is largely undervalued, and the true value will be realized after the ongoing legal battle with the United States SEC.

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