Opinion That Says XRP Could Become the World’s Reserve Currency Meets Mixed Reactions

[solodeji]

https://heraldsheets.com/opinion-that-says-xrp-could-become-the-worlds-reserve-currency-meets-mixed-reactions/

[Scout]

The funny part of that link was the video content on that page where the guy says the price of XRP will go from .25 cents each to $2500 each. I want whatever he's smokin'!

Edited October 19, 2020 by Scout

[jetbrzzz]

Quote

As expected, this opinion has met with a lot of mixed reactions, especially from the XRP community members. Some members see such a claim as a hoax, believing that XRP is only designed as a bridge currency and not to serve as the world’s reserve currency.

Ehhhh, this is probably closer to the truth.  As it stands now, XRP is a settlement asset (commodity).  Gold is a weirdo commodity/money but there's only 10 billion ounces of gold ever mined. That's a little more than 1 troy-ounce coin per human on the planet. If gold were the world's functioning currency, we'd be paying for $1 store items in micrograms of gold dust, it's so scarce. Hence the old bi-metallic system with silver. Even when we were on a gold standard, we end up basically issuing paper on the gold cause it's so impractical as currency, heavy af, etc.

I think XRPL gave themselves a regulatory headache when they dubbed XRP a crypto-"currency", straight from the website itself. If they coined it a "digital asset", that might make more sense.  'Currency' kinda implies money and that you're buying things with it like you would dollars, a medium of exchange.  Yes, you can exchange XRP for dollars, but can you exchange XRP for gas at a gas station or groceries today? Could change in the future but who knows.

You can't buy goods in America with Japanese yen and vice versa.  At least one G10 country would have to accept XRP wholesale for EVERYthang, from bubblegum to taxes, for XRP to be a world reserve currency. That's a stretch considering no sovereign nation is going to abandon their fiat, be it paper or digital. 

This was the IMF's SDR's failure, no one uses it for anything, how can it be a world reserve currency? Unless you die at sea... In the words of Han Solo, "What good is an SDR if you ain't around to use it?"

 

[kanaas]

1 hour ago, jetbrzzz said:

Ehhhh, this is probably closer to the truth.  As it stands now, XRP is a settlement asset (commodity).  Gold is a weirdo commodity/money but there's only 10 billion ounces of gold ever mined. That's a little more than 1 troy-ounce coin per human on the planet. If gold were the world's functioning currency, we'd be paying for $1 store items in micrograms of gold dust, it's so scarce. Hence the old bi-metallic system with silver. Even when we were on a gold standard, we end up basically issuing paper on the gold cause it's so impractical as currency, heavy af, etc.

I think XRPL gave themselves a regulatory headache when they dubbed XRP a crypto-"currency", straight from the website itself. If they coined it a "digital asset", that might make more sense.  'Currency' kinda implies money and that you're buying things with it like you would dollars, a medium of exchange.  Yes, you can exchange XRP for dollars, but can you exchange XRP for gas at a gas station or groceries today? Could change in the future but who knows.

You can't buy goods in America with Japanese yen and vice versa.  At least one G10 country would have to accept XRP wholesale for EVERYthang, from bubblegum to taxes, for XRP to be a world reserve currency. That's a stretch considering no sovereign nation is going to abandon their fiat, be it paper or digital. 

This was the IMF's SDR's failure, no one uses it for anything, how can it be a world reserve currency? Unless you die at sea... In the words of Han Solo, "What good is an SDR if you ain't around to use it?"

 

Agreed. The idea of SDR never did and never will (political) work. But I think that the idea of a "global fiat currency reserves" will vanish too and their role might be overtaken by other bridges. A reserve today basically is no more than a broad accepted and trusted (stable) currency for cross border payments... USD, EUR, RMB, to name the most common. Actually, in the world of corresponding banks they indeed act like bridges as well . But the problem with them as bridges is that they only serve as payment carriers who 100% rely on the corresponded banking trust network. OTOH by bridging with trustless crypto networks like BTC, ETH, XRP this can/will changed. Looking into the future I can see the days that global trading banks/companies are better served by holding just some trustles (bridge) crypto assets to translate an to move value around.... That's what a future value web can look like some day where they might become the new "reserves" for global trading. But those reserve will NOT be sitting on the banks - to much volatility - but it will be the "Market Maker" who will hold, speculate and trade with those bridge reserves...

You know what? The name "stablecoin" actually is an idea of the past. Banks still try to project that idea of a stable (reserve) currency, like they always knew with USD, on those new emerging blockchain tech. But even the USD never was THAT stable. It just was the best to trust when you're payment could take some weeks to go from Europe to China. Brad is right when he says that a payment bridged by XRP actually is way more stable  with a volatility exposure time below the minut. It's not the (reserve/bridge) currency that has to be stable: it's the network, the rails and most of all the speed that will serve for stability in this whole new world of global trading.

What do you think will be more stable: having large "stable" reserves in foreign banks or rather the option to have an instant global payments & settlements without the need to have local reserves in "stable" coins?