Recently, Jake Claver revisited his XRP Domino Theory, presenting predictions about how current economic events could lead to broader use of XRP.
Japan and the Digital Yen
Claver's first observation focuses on Japan, where the economy is awakening from a long-term stagnation. Japan is ahead in developing a central bank digital currency (CBDC)—the digital yen. Claver suggests that Japanese institutions might choose to retain capital domestically due to the digital yen, leading to shifts in institutional investment.
US Treasury Market Shock
The next phase in Claver’s theory centers on the potential shock in the US Treasury market. If Japan starts shedding US Treasuries, according to Claver, it could trigger a loss of confidence in US government debt among other countries and private investors, creating significant market shifts.
Stablecoin Volatility and Implications for XRP
Instability in the US Treasury market might negatively affect stablecoins like Tether, which are crucial to crypto markets. Claver warns that if stablecoins lose their stability, it could create substantial volatility in the crypto markets. He compares this situation to the Terra Luna collapse, illustrating how quickly trust can vanish.
Jake Claver's detailed predictions suggest how global financial events might alter the role of digital assets such as XRP, emphasizing their importance in a turbulent economic environment.
