IMPORTANT POINTS:
- David “JoelKatz” Schwartz, CTO of Ripple, envisions XRP as a potential global reserve currency.
- Schwartz points to excessive economic growth in the US thanks to its reserve currency.
- Discussions in Twitter Spaces about XRP include criticism of the SEC and its performance in the crypto sector.
In a recent chat on Twitter Spaces called “What’s Happening With XRP”, David “JoelKatz” Schwartz, Ripple’s CTO, shared a bold vision about the future of XRP, suggesting that it could become the world’s reserve currency.
Referring to current reserve currencies, Schwartz noted that he feels many around the world are ready to leave the US dollar behind as the reserve currency of choice.
In fact, the technological leader maintained that there are nations willing to explore alternatives to the dollar. “One of my boldest speculations is whether countries perceive that the US currency will not hold its reserve position forever,” he said.
To contextualize his point, Schwartz used a banking analogy. He explained that most of the smaller banks would be willing to change a system imposed by large financial institutions so that, instead of favoring only a powerful few, it benefits a wider range.
“I think something similar could happen with nations,” he added, “they all want their currency to be the main one in terms of reserves. In fact, the disproportionate growth of the US economy over the decades is a testament to that.”
Going deeper, Schwartz described that smaller nations, despite knowing that their currency would never reach that world reserve status, would not want to see their competitors make undue gains.
This, he opined, could steer these countries toward a digital currency, like XRP, that is not under the rule of any state, especially not geopolitical adversaries.
Twitter Spaces, which took place recently, was attended by prominent XRP analysts and fans. Throughout the dialogue, the ups and downs of the blockchain and this remittance token in recent months were discussed. In addition, the litigation between the SEC and Ripple was a recurring theme, where many expressed their criticism of the regulatory agency for its measures in the world of cryptocurrencies.
