Jump to content

Thougth experiment. Could XRP replace the IMF SDR?


Recommended Posts

I have some time to kill. So a little thougth experiment. 

The SDR functions as a reserve to provide liquidity (instead of gold or reserve assets). The function is similliar to XRP. You could exchange draw XRP for USD if you need to pay your imports.  I think the SDR is not traded on the Forex market and has an allocated value from the IMF.

 

So, would it be possible and would it bear any improvement over the SDR drawing with interest?

Link to post
Share on other sites

I absolutely think this is possible. SDRs represent a claim to currency held by IMF member countries for which they may be exchanged.

This would explain all the meetings with central banks, as well as the IMF and World Bank being pro-Ripple. Perhaps this is what "level playing field" means..

Link to post
Share on other sites
3 minutes ago, XRPboi said:

@lucky @itcdominic If this is the long term plan and XRP is used as the SDR (unit of account), would this mean that a value/price would be set for XRP? Or would a fluctuating (increasing) value over time be okay?

The whole point of the SDR is that it's allocated and not dictated by the market. 

"The currency value of the SDR is determined by summing the values in U.S. dollars, based on market exchange rates, of a basket of major currencies (the U.S. dollar, Euro, Japanese yen, pound sterling and the Chinese renminbi). The SDR currency value is calculated daily (except on IMF holidays or whenever the IMF is closed for business) and the valuation basket is reviewed and adjusted every five years."

1xrp = 1.37 USD
 

Link to post
Share on other sites
1 minute ago, TheyLive said:

The whole point of the SDR is that it's allocated and not dictated by the market. 

"The currency value of the SDR is determined by summing the values in U.S. dollars, based on market exchange rates, of a basket of major currencies (the U.S. dollar, Euro, Japanese yen, pound sterling and the Chinese renminbi). The SDR currency value is calculated daily (except on IMF holidays or whenever the IMF is closed for business) and the valuation basket is reviewed and adjusted every five years."

1xrp = 1.37 USD
 

How could XRP serve as an international bridge asset (used by individuals, companies, banks, and governments) with high-demand, yet be stable at a price that is not dictated by utility and the deflationary nature of the asset?

Link to post
Share on other sites
1 hour ago, itcdominic said:

I have been in this camp for about a year now.  I not only think its possible, I think this ball is in motion.  But, as you said...SHHHHHHH! Don't tell anybody!

alex jones conspiracy GIF

Link to post
Share on other sites
4 minutes ago, TheyLive said:

The whole point of the SDR is that it's allocated and not dictated by the market. 

"The currency value of the SDR is determined by summing the values in U.S. dollars, based on market exchange rates, of a basket of major currencies (the U.S. dollar, Euro, Japanese yen, pound sterling and the Chinese renminbi). The SDR currency value is calculated daily (except on IMF holidays or whenever the IMF is closed for business) and the valuation basket is reviewed and adjusted every five years."

1xrp = 1.37 USD
 

If only that last line would be true ... :girl_in_love:

Link to post
Share on other sites
1 minute ago, XRPboi said:

How could XRP serve as an international bridge asset (used by individuals, companies, banks, and governments) with high-demand, yet be stable at a price that is not dictated by utility and the deflationary nature of the asset?

I don't understand the question. 

Link to post
Share on other sites

The SDR is the unit of account for the IMF, and is not a currency per se ...while XRP is targeted as a bridge currency ...

"One of the XRP Ledger's most powerful features is the native ability to use XRP as a bridge currency on a decentralized exchange, whether for trades or for cross-currency payments." -- David Schwartz


https://en.wikipedia.org/wiki/Special_drawing_rights

 

Link to post
Share on other sites
9 minutes ago, XRPboi said:

How could XRP serve as an international bridge asset (used by individuals, companies, banks, and governments) with high-demand, yet be stable at a price that is not dictated by utility and the deflationary nature of the asset?

Indeed is the value of the SDR calculated based on the rate of a basket of existing currencies. To peg a digital asset to those currencies would introduce just another 'stablecoin' ...

How could XRP, if being used as a bridge currency as you described have some price stability ... that could be if it is traded as a forex currency, so very high volume, high liquidity, low spread ... how to get there is an interesting issue ...

Link to post
Share on other sites

Replace the SDR? Probably not in our lifetime, but complement the SDR, absolutely. Remember this video of BG and the lawyer from IMF? A nation would first have to adopt a cryptocurrency before IMF could hold that asset. There are already plans in motion and IMF is "strongly considering" creating a IMFcoin. 

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.