3 Ways Ripple Plans to Dismantle Dollar Dominance With XRP

• For some time now, global powers like the BRICS nations have continuously worked to reduce their reliance on the US dollar.
• A token that is well-suited for this challenge is XRP, the fourth-largest token with a market cap of $2.17.

At launch, XRP back in 2012, the intention wasn’t to replace the U.S. dollar, but rather to improve the way cross-border payments worked, making them faster and more affordable. At the time, the vast majority of international payments were funneled through USD using the SWIFT system, which was notoriously slow and expensive.

As detailed in some of our news pieces, XRP was built as a bridge currency to help banks avoid the need to hold large reserves of U.S. dollars or other foreign currencies during transfers. In those early days, Ripple’s vision was clear: complement the dollar, not compete with it, while reducing the global reliance on USD reserves.

Here are 3 ways that Ripple de-thrones USD

1. Cross-Border Payments

As RippleNet, the company’s payment network, started gaining traction between 2015 and 2018, things began to shift. Ripple’s On-Demand Liquidity (ODL) service allowed institutions to move money instantly with XRP, eliminating the need for pre-funded USD accounts. This began subtly challenging the dollar’s long-standing role as the go-to currency for settling cross-border transactions.

Usually, when money moves internationally, say from the U.S. to Europe or Asia, it can take days to settle. That’s because banks often rely on correspondent banking networks, which are slow and involve multiple intermediaries. Each step adds fees and delays. XRP enables near-instantaneous transfers without pre-funded accounts, dramatically cutting both cost and settlement time.

In regions like the Middle East, Africa, Southeast Asia, and Latin America, Ripple has partnered with banks and remittance firms to put that into motion. The institutions are reaping the fruits of the XRP Ledger (XRPL), which was purpose-built for fast and scalable digital payments. This is making a compelling case for XRP as a real-world payment utility.

2. The Dollar Alternative

As many explore options beyond the dollar, especially within blocs like BRICS (Brazil, Russia, India, China, South Africa) and ASEAN, Ripple is quietly weaving XRP into new trade corridors. CNF reports that governments are exploring XRP as a settlement layer to bypass the USD entirely, and they are updating outdated structures to protect against monopoly-style tactics in global finance. With Ripple’s XRP being embraced in global coalition dialogues, the crypto is gaining traction as a potential non-dollar lifeline for trade.

Even if two countries trade with each other in their local currencies, payments often move through USD first. This adds extra fees, exchange rate risk, and can make paying tariffs more complex, especially when exchange rates fluctuate or when the U.S. imposes financial restrictions. In these alliances seeking more financial autonomy, XRP offers a path to continue conducting trade.

3. Sanctioned Countries

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the primary messaging network banks use to securely communicate and settle international payments across more than 11,000 institutions in 200+ countries. Without SWIFT access, cross-border trade and payment processes become far more difficult and costly. In March 2022, the U.S., EU, UK, Canada, and others removed seven major Russian banks, including VTB, Rossiya, Sovcombank, Promsvyazbank, and VEB, from SWIFT. These bans aimed to disrupt Russia’s ability to trade globally, especially oil and gas, which make up roughly 40% of its revenue

The sanctioned economies could use XRP for trade without accessing USD reserves. This positions XRP as a strategic fallback for nations navigating financial exclusion. Additionally, there’s talk of central banks piloting XRP for liquidity and compliance-first money transfers.

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