- XRP's Role as Global Reserve and Bridge Currency
- China's Global Monetary Strategy
- Necessary Changes in Central Bank Functions
XRP is likely to serve as a global reserve and bridge currency in the future, given its unique cross-border settlement capabilities.
XRP's Role as Global Reserve and Bridge Currency
Crypto enthusiast Edward Farina highlighted a map describing how coins like XRP can serve as a global reserve asset, with gold as an essential anchor. This challenges the long-running discussion surrounding gold as the cornerstone of a stable monetary system. Gold has historically been seen as a reliable store of value and a hedge against inflation. However, its role in modern finance is increasingly being viewed through the lens of digital transformation. The map outlines a tiered structure for global currencies, with SDRs at the top, followed by Tier 1 currencies like the US Dollar, Euro, Japanese Yen, and others. Tier 2 assets encompass CBDCs issued by central banks, which can interact seamlessly across borders with the aid of bridge currencies like XRP. It is anticipated that XRP could facilitate the conversion of other CBDCs by providing liquidity and reducing friction in international transactions.
China's Global Monetary Strategy
The map also focused on China’s strategic positioning in the global monetary ecosystem. According to the narrative, one tactic for influencing the world’s monetary system may be to amass gold. However, the map refers to this strategy as a 'gold deception,' suggesting that China’s goals might go beyond merely backing its currency with gold. China’s approach involves utilizing its gold holdings along with a broader plan to employ digital currencies, potentially countering the dominance of the US dollar and imposing greater control over the global financial system.
Necessary Changes in Central Bank Functions
Overall, critical functions of central banks would need to be altered to implement the proposed monetary system reset. The Ripple-associated XRP stands a chance to speed up changes in the global monetary landscape.
XRP, with its cross-border settlement capabilities, could become a key element in the reorganization of the international monetary system, providing liquidity and improving interactions between central bank digital currencies.
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