Emily Walker
Ripple’s XRP has been creating quite a buzz lately, largely due to its fluctuating prices, a potentially favorable stance from the Securities and Exchange Commission (SEC), and its promise to enhance the global financial system.
In contrast to many cryptocurrencies, Ripple’s XRP is designed specifically for the banking industry, offering an efficient system for international settlements. A crypto analyst suggests that the US could leverage Ripple’s financial insight and XRP to gain an edge in both finance and cryptocurrency sectors.
A crypto researcher named Anders claims in a recent article that the US can utilize Ripple’s resources and regard its token as a “strategic weapon.” He believes that no other cryptocurrency project is as capable as Ripple, especially with plans for a USD stablecoin launch on the horizon.
Main reasons why Ripple along with XRP is a strategic weapon for the US:
Ripple heads a next-gen B2B global payment system run by a US entity.
— Anders
(@X__Anderson) December 2, 2024
Trump Envisions the US as the ‘Crypto Capital’
With Donald Trump returning for a second term, the US could become the world’s “crypto capital.” During his campaign, Trump aimed to cultivate a welcoming environment for cryptocurrencies, promising actions like the immediate removal of Gary Gensler as SEC chairman.
Although he was once hesitant about Bitcoin, Trump’s stance shifted significantly during the campaign as he began supporting Bitcoin-centric initiatives, such as proposing a national Bitcoin reserve. Moreover, he appointed David Sacks as a “crypto czar,” reiterating his commitment to advancing the industry.
Enhancing International Transactions with Ripple’s XRP
Anders outlines three essential ways in which Ripple and XRP could be beneficial for the US. Firstly, Ripple has established a state-of-the-art B2B cross-border payment system; being a US company allows for easier governmental oversight.
Additionally, the introduction of Ripple’s planned stablecoin, RLUSD, could facilitate broader USD adoption among financial institutions. They are currently awaiting approval from the New York Department of Financial Services (NYDFS) to issue these stablecoins on the XRP Ledger and Ethereum networks.
Standard Custody & Trust Company has been designated to issue the stablecoins pending approval. Users of Ripple can utilize these stablecoins for international transactions, just as they would with XRP.
Ripple’s Extensive XRP Holdings
Anders also noted Ripple’s substantial XRP holdings, which can serve as a “strategic asset” for the United States. With Ripple controlling approximately 45% of XRP’s total supply, it stands as the largest holder of the token.
Revisiting Trump’s earlier comments, Anders emphasized the importance of backing US-based tokens and firms. He asserted that no other venture in the cryptocurrency sector possesses similar advantages. According to him, this is merely the start for Ripple, with intentions to expand into DeFi offerings soon.
Featured image from DALL-E, chart from TradingView