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Analyzing Future Potential Capital Inflow Into XRP


Mpolnet
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Apologies in advance for the long post but stick with me on this one, hopefully some of you will find it interesting. As always, I welcome any and all feedback and contributions to the analysis and thinking presented below. 

Firstly, the link below is from this years SWELL conference and features Navin Gupta (of Ripple) speaking with Dr. Raghuram Rajan (former Central Banker for India). They discuss a wide range of topics from micropayments, financial inclusion, globalization, trade finance, regulation, stablecoins, etc. Dr. Raghuram Rajan also provides the best explanation of what XRP is and it's intended purpose that I've heard to date. While watching the discussion there were a number of points made about how countries can encourage the development of new technologies through sandboxes in addition to points made around how regulators get comfortable with digital assets in general. The more countries allow experimentation and go from pilot to production, the greater the potential for collaboration and new entrants into existing industries. Paytm was a great example. For anyone who hasn't watched the video, I highly recommend it (not sure why it's linking poorly).

https://www.youtube.com/watch?v=ad_A5v0d9hc

This discussion got me thinking about what markets XRP is currently available in - where fiat/XRP pairs exist for that countries native currency. Given there's over 180 countries, I think it's critical to think of XRP's exposure to the world on a macro level, rather than just thinking about how the large countries interact with XRP. Thinking this way can give us a potential idea (or way to think about) the potential capital inflow into XRP that has yet to be tapped. I've heard numerous times that in order for price to rise we need a new wave of buyer - I think this could be a good starting point of thinking about where that new wave might come from. 

Below is an analysis taking info from xrparcade (big thanks to @LeonidasH for his huge contribution to creating and updating this). It shows countries ranked by GDP output (countries are ranked by the IMF) - it then shows the number of existing exchanges with fiat/XRP pairs for that respective countries native fiat currency. As shown below, there are still a lot of countries that provide potential investors with minimal or no exposure to investing in XRP. 

image.thumb.png.32febfbb7b64f9ea51db3deea03d09df.png

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28 minutes ago, Mpolnet said:

 it shows the number of existing exchanges with fiat/XRP pairs for that respective countries native fiat currency. As shown below, there are still a lot of countries that provide potential investors with minimal or no exposure to investing in XRP. 

France 1, Italy 1, Germany 1...

I don't get it. Aren't they all in EU? Their fiat is EUR, so a single XRP/EUR pair is good for those countries, no matter if the exchange is in Italy or France or Germany.

Therefore Belgium 0 is not correct

Or I'm missing something?

Edited by Dario_o
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15 minutes ago, Dario_o said:

France 1, Italy 1, Germany 1...

I don't get it. Aren't they all in EU? Their fiat is EUR, so a single XRP/EUR pair is good for those countries, no matter if the exchange is in Italy or France or Germany.

Therefore Belgium 0 is not correct

Or I'm missing something?

I had ran into the same thought when running the analysis. What I did was 1) use this link to search where the country had a fiat paired exchange available https://www.xrparcade.com/xrpfiatpairs/  followed by 2) using this link to search the country and then scrolling through to see where the EUR was available https://www.xrparcade.com/markets/

For example, the first link doesn't show any exchanges in France whereas the second link does in fact have a EUR/XRP pair for a French exchange. Hope this helps clear it up.

EDIT: Above example is true for Italy and Germany as well. I kept it country specific due to the potential differences in regulation from country to country, even within the EU.

Edited by Mpolnet
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With the recent news of the ILP SDK's for (mobile) developers to integrate payments directly into apps, phones and wallets, won't the total number of "fiat pairs" and ease of accessibility increase exponentially as these products are rolled out across different regions?

I understand that fiat pairs and ample liquidity is needed at preferred exchanges to facilitate and grow ODL in any given area. Do these exchanges also limit or slow down the roll out of XRP enabled payments in consumer facing apps/wallets that are already widely adopted?

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