Categories: Ripple

XRP Emerges as the Top Choice for Global Payments Over Bitcoin and Ethereum

A crypto analyst has said that Bitcoin and Ethereum are too slow and expensive for global payments.
XRP can handle more transactions at a lower cost, making it better for banks and cross-border use.

Bitcoin and Ethereum do not share the essential characteristics necessary for fast, inexpensive global transactions, according to a prominent crypto analyst. Top blockchain analyst SMQKE claimed in a post on X that both networks lack scalability, which is necessary for financial institutions processing millions of transactions daily.

‼️ WHY BTC AND ETH WILL NEVER COMPETE WITH XRP IN GLOBAL PAYMENTS ‼️

Scalability means how well a system can handle lots of transactions at the same time, quickly and without high costs. Banks need this because they process millions of payments every day that must be fast and… https://t.co/N5tjg8GZ64 pic.twitter.com/PnuiSqLZc1

— SMQKE (@SMQKEDQG) June 5, 2025

SMQKE said Bitcoin and Ethereum weren’t built to handle the size of modern payment systems. He noted that both processes have around 20 transactions per second, which creates congestion, high fees, and lengthy confirmation times. The analyst argued that performance problems made it incompatible with the demands of real-time finance.

According to the analyst, BTC and ETH have been intentionally excluded from high-volume payment systems by financial institutions due to regulatory and efficiency concerns. In his view, they were excluded from such infrastructure because of their lack of ability to deliver the speed and scalability of enterprise-grade solutions.

XRP’s Ledger Offers Speed, Scale, and Utility

In contrast, XRP and its underlying technology, the XRP Ledger (XRPL), were purpose-built for fast and scalable digital payments. According to SMQKE, the ledger can handle up to 1,500 transactions per second, and each will cost under $0.01. Transactions are confirmed in the system in about three to five seconds, which makes it a good candidate for institutional transactions and cross-border payments.

According to the analyst, the core design of XRP is also a reason Ripple has integrated into global financial networks. While Ripple owns and controls the decentralized XRPL network, the company uses the XRP Ledger in various enterprise solutions.

According to SMQKE, XRP can be categorized as a utility token specifically optimized for real-time payments. He noted that XRP’s capabilities meet what the banks and big payment processors need: speed, low fees, predictability, and global reach across jurisdictions.

XRP Gains Regulatory Clarity Under MiCA

The commentary also linked XRP’s design advantages to its emerging regulatory standing in Europe. Under the EU’s Markets in Crypto-Assets (MiCA) regulation, XRP is classified as a utility token. In contrast, Bitcoin and Ethereum fall outside the framework due to their lack of identifiable issuers.

SMQKE backed this distinction with documentation outlining XRP’s compliance with MiCA standards, citing its use in cross-border payments and digital asset trading. The clear classification under MiCA could provide XRP with a regulatory edge in European markets, where clarity is increasingly crucial for institutional participation.

The discussion follows earlier concerns about the widespread misunderstanding of XRP’s relationship with Ripple. Ripple executive Reece Merrick recently addressed this confusion, noting that XRP is not a company share and does not represent ownership in Ripple. He clarified that Ripple builds products using XRP, but the ledger is open-source and governed by a decentralized community.

Separation of XRP and Ripple Reaffirmed

Merrick’s statement reinforced XRP’s status as an independent asset. He explained that while Ripple utilizes XRP to build cross-border payment solutions, it does not control the XRP Ledger. The decentralized structure ensures that anyone can use, build on, or interact with the network.

By drawing attention to XRP’s utility, scalability, and regulatory recognition, SMQKE and other blockchain experts are making the case that XRP is not only relevant but increasingly essential for global payment infrastructure.