Iranian Research on Ripple's XRP Gains New Relevance Amid US-Iran War
An old study on Ripple's XRP by an Iranian academic institution has gained new relevance due to the ongoing US-Iran war. The research, conducted in 2021, focuses on the use of XRP for cross-border payments and its ability to handle market volatility.
The study employs various models, including Monte Carlo simulations and Hidden Markov Models, to analyze potential downside risk and identify large price jumps in extreme market situations. It also explores how payment routing might evolve to meet changing circumstances.
The research suggests that a framework focused on volatility and risk can help XRP-based settlement systems adapt to market conditions. However, it is essential to note that the study does not imply that Iran will use XRP for payments or that it is a solution for the country's current financial challenges.
In fact, Iran has been using Bitcoin and Tether for trade amid sanctions. The renewed interest in the study highlights the growing importance of alternative payment systems, particularly during times of geopolitical tension.