Jump to content

Digtal Reserve Currency talk???


Recommended Posts

@mariusthegreat - wonderful logic, very sound. Still I can't help but agree with @2ndtimearound that gold will play a large and foundational role in the support of XRP as a bridge / global reserve currency (maybe I missed that in your argument (it was pretty long)) ..anyhow... it may also be 'cause that bear guy hinted at it, not sure. Time will tell though.

Way back when, years ago when I suggested that it was going to be used as a reserve currency (folks chuckled and patted my head saying what a pleasant fellow, daft yes but pleasant non-the-less) yet here we are with a BOE Governor suggesting that "a Libra type" digital currency replace the dollar and we all know there's only one (currently (XRP)) that can even come close. 

 either way (hodl)

Edited by XRPCascade
Link to comment
Share on other sites

53 minutes ago, XRPCascade said:

yet here we are with a BOE Governor suggesting that "a Libra type" digital currency replace the dollar and we all know there's only one (currently (XRP)) that can even come close. 

As much as I would like that to be true,  I don’t think XRP is currently a prime contender for that.  There is not ‘only one’ because the CBs can simply create one if they wish to.

Also there are other existing crypto contenders, although each of which has a flaw or two in the CB view I think.

So if the IMF ended up with the Escrow and if the Founders stacks were controlled somehow, then yeah I can see it’s possible XRP might replace that Dollar role.  But it looks less than likely at this stage to me.

The very fact that Carney is talking about a “pegged to a basket” coin sort of rules out XRP unless the whole situation changed dramatically.

Link to comment
Share on other sites

On 8/26/2019 at 6:14 PM, mariusthegreat said:

Maybe...

Levelling the playing field by putting all in together. Its almost akin the the Euro, but its not the Euro, its a stake in a multi functional (Sovereign) currency / asset which is used to benchmark global trade (almost Libor in operation) and it will be highly liquid - So if for example the UK goes into a recession  - in this model, this should not affect global trade  as say the USD - in the current model, affects foreign companies / countries due to the sheer amount dollar debt / liabilities on their balance sheets - spillovers > contagion. This is my interpretation of the Carney paper.

This could be the very beginning of a global currency but NOT a global currency. There will be off-shoots i believe.

To be clear I am not saying gold is worthless or useless, to the contrary it has many uses, in Electronics, pharmacy, jewellery etc. I just completely disagree with the gold standard and it appears many central bankers do to.

 

In addition to what you said, I'm wondering if a gold backed XRP is still able to settle instantly. We know that a stablecoin backed by fiat, transfers liability, not value, because the fiat backing the coin is located somewhere else. A gold backed crypto IMO also transfers liability, not value, because the gold backing the crypto is located somewhere else.

Another disadvantage of XRP being backed by gold or anything else, is the possibility (likelihood) of usage of a reserve ratio. Look at Tether. Only 74% of its reserves has USD and equivalent backing. And reserve ratios can be changed over time.

I'm not an expert but if you want to be able to devalue fiat against a virtual currency (as Carney suggested), I think that virtual currency has to be 100% independent and outside of the fiat system and anything connected to that system. Carney did speak about 'a Libra-like coin', but I believe the envisioned Synthetic Hegemonic Currency won't be pegged to a basket of coins because that virtual currency itself will devalue as soon as one of the coins backing it, devalues (assuming the other coins backing it keep their value).

Ps. Galgitron in his tweet compares 'XRP backing by gold' to 'gold backing by platinum'.
https://twitter.com/galgitron/status/1152990651132325888
 

Edited by Danny
Link to comment
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
 Share


×
×
  • 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.