Digital Assets Like XRP Could Challenge USD as World Reserve Currency: Ripple CTO

Ripple CTO David Schwartz believes that digital assets like XRP could become world reserve currencies.

The XRP community is again bustling with excitement as a top executive at Ripple commented on the likelihood of countries adopting digital assets as a reserve currency. 

In a recent Twitter space hosted by anonymous XRP community member XRPStewie, David Schwartz, Ripple’s CTO, was quizzed about the possibility of two World Reserve currencies coexisting. Schwartz replied in the affirmative that it is possible.

The Ripple executive based his argument on the US dollar’s dominant role in the reserve of most countries. Schwartz noted that various nations may be willing to explore other options, prompting the place of digital assets like XRP. 

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A top XRP influencer shared snippets of the interview with the crypto community. 

#DavidSchwartz– “The Success Scenario is a Currency no one controls. If the choice is no boss and that happens to make a bunch of cryptocurrency people rich rich I don’t think they’re going to see that as to much of a minus.”
Two World Reserve currencies can exist at the same… https://t.co/gSsFR7ldoH

— Digital PerspectivesPermaBull🪝 (@DigPerspectives) August 7, 2023

XRP as Reserve Currency?

Schwartz presented an intriguing perspective on how digital assets like XRP could potentially play a role in reshaping the global currency landscape. He expressed that his typical success case scenario for digital assets is when countries begin to realize that the USD cannot remain the sole reserve currency.

Schwartz drew a parallel to the banking sector, highlighting his experience offering blockchain software to banks. He emphasized that smaller banks preferred software solutions not developed by major banks, as these larger entities might bias the system in their favor. 

Similarly, he speculated that nations could lean towards a currency that is not under the control of their political rivals. He mentioned that this scenario could be the most promising pathway for the success of digital assets like XRP, which remains neutral and decentralized.

Schwartz remarked: “Nobody but the EU wants the EU to replace the dollar. Nobody but Russia wants the Ruble to replace the dollar; nobody but China wants the Yuan to replace the dollar. So maybe they could settle on a currency that nobody could control rather than one controlled by their most powerful political rival. So that’s like what I think is the biggest possible success scenario for digital assets.”

Schwartz was asked how nations could come to agree on a particular digital asset. He proposed that these nations might be more inclined to cooperate if the alternative does not involve switching one boss for another.

“if the choice is no boss; you know if that happens to make a bunch of cryptocurrency people rich I don’t think that’s too much of a minus,” he concluded.