XRP as a Global Reserve Currency: Why Ripple CTO Schwartz Believes in This Scenario

A Provocative Thesis in Focus of the Crypto Community

In a recent Twitter Space, David Schwartz, Chief Technology Officer of Ripple, discussed a daring thought experiment: Could XRP eventually replace the US Dollar as the world’s reserve currency? The tech expert acknowledged that this is an extreme scenario but defended the thesis with surprisingly plausible geopolitical arguments.

Why the Dollar is Losing Its Dominance

Schwartz’s central thesis is: The US dollar will not remain the world’s reserve currency forever. Many countries worldwide have already begun seeking alternatives. The reason lies in the unequal distribution of economic benefits – for decades, the US economy has benefited disproportionately from its currency hegemony.

The Dilemma of Smaller Nations

Here, Schwartz presents a fascinating argument: While large countries would like to elevate their own currency to a global reserve, smaller and medium-sized nations know that their currency can never reach this position. Therefore, they have no interest in a rival country (such as the USA) unfairly profiting from this system. The solution? A neutral, decentralized digital currency controlled by no one as the global reserve currency.

XRP as a Neutral Compromise

This is where XRP comes into play. Unlike national currencies, XRP is not controlled by any single government or geopolitical power. This makes it a potential compromise for countries that prefer a fair, decentralized reserve currency system – without favoring a rival.

Discussions Around Regulation and the Future

Several established XRP analysts and crypto professionals participated in the Twitter Spaces discussions. A central topic was the ongoing dispute between the SEC and Ripple, which many participants criticized as a targeted regulatory campaign against the crypto industry.

While Schwartz’s scenario sounds ambitious, it at least shows how seriously industry leaders are taking the potential reorganization of the global financial system – and what role decentralized digital assets could play in it.

Note: This article is for informational purposes only. Conduct independent research before making investment decisions. The responsibility for all transactions with crypto assets lies with you.