Ripple CEO Brad Garlinghouse recently announced that the company is willing to invest up to $1 billion for acquisitions, with Switzerland and the United Arab Emirates (UAE) as potential targets. If the plan is successful, XRP, the cryptocurrency issued by Ripple, could see a massive increase in price.
If more companies start using XRP for cross-border payments, there is reason to believe that its price could reach the highs of the 2017-2018 bull market, when it traded well above $3. However, the bear market that followed saw XRP trading as low as $1.15, before it climbed up to $1.8 in the latest bull run.
The UAE is widely considered to be a crypto-friendly jurisdiction, with the government taking a positive approach to the emerging technology. This is especially interesting in the face of the US regulatory environment, which has been described as “confusing” and “complex” by industry leaders. The UAE’s regulatory framework is seen as more streamlined and business-friendly, providing clarity to entrepreneurs and allowing companies like Ripple to invest.
If Ripple’s strategy proves successful, XRP could be on its way to long-term price gains.