XRP: The World’s Next Global Reserve Currency?

September 5, 2023 12:24 pm Comments

Ripple Labs caused a stir in the financial world when it touted its native currency XRP as the world’s next reserve currency.

Those plans have since been placed on the bench due to both an ongoing legal battle with the Securities and Exchange Commission (SEC) and a shifting focus on product development.

According to analysts and crypto influencers, Ripple Labs is currently focused on stablecoin innovation, with cross-border payments taking a backseat to those efforts.

It must be stressed that these are merely takes or opinions based on Ripple’s recent behavior—no official statement has been made confirming this.

During a recent X-spaces conversation, Schwartz explained that the international community no longer wants to use the U.S. dollar as a global reserve currency, yet their own currencies won’t suffice.

The solution, according to Schwartz, could lay in pivoting to digital assets, such as XRP, that would democratize financial success without elevating a single nation’s local currency to that of the global reserve standard.

David Schwartz, Ripple’s Chief Technical Officer, recently hosted a talk on the X social media platform in which he discussed Ripple Labs’ current path and objectives:

Crypto influencer Mickey B. Fresh detailed how recent technical innovations involving PRISMA and access to Ripple’s On-Demand Liquidity (ODL) platform could turn XRP into the world’s most efficient liquidity aggregator in the world.

Coin Edition dissected Schwartz’ recent comments:

Schwartz explained, using an analogy of banks, that most smaller banks would want to change a system set by large banks so that the new system would work in their favor instead of being biased and merely catering to the needs of a very few successful and powerful entities.

“I think the same thing could happen to nations,” said Schwartz, “like every nation would like their currency to be the world reserve currency. That is how the U.S. economy has grown unfairly by leaps and bounds for decades.”

In 2017, Ripple Labs explained that “We remain more committed than ever to the simple goal of making XP the world’s reserve digital currency.”

Bitcoinist provided an alternative perspective and claimed that Ripple has now shifted its core focus to other objectives:

The focus appears to be shifting towards the integration of stablecoins on the XRP Ledger (XRPL) and the potential utilization of decentralized exchanges (DEXs) in Ripple’s ODL service.

Schwartz also provided insights into the company’s current trajectory. “Decentralized exchanges are not presently integrated into ODL.”

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