Thread by @XRP_Anderson

1/15
The case for XRP as a world reserve currency.

What are the goals for Ripple when it comes to XRP?

At Ripple Insights we can read:
”We remain more commited than ever to the simple goal of making XRP the world’s reserve digital currency.”

Now, what does this actually mean?

2/15
What does being a world reserve currency include?

It has 2 parts.

- ”held in significant quantities by governments and institutions as part of their foreign exchange reserves.”

- ”commonly used in international transactions, international investments and all aspects

3/15
of the global economy.”

That’s interesting. We know it has been planned for XRP to become the global settlement asset but it hasn’t been known that governments and institutions are going to hold it as part of their foreign exchange reserves.

4/15
Well that is what is included as part of a world reserve currency.

That governments would hold XRP as part of their foreign exchange reserve may thus not be as tinfoil hat as it sounds.

We know that voices has been expressed for a new independent world reserve currency.

5/15
The Chinese has expressed that they wish SDR to become the new world reserve currency, replacing the dollar.

The IMF has expressed that they wish to see the dollar being replaced as well and at Bretton Woods at 75 there was a strong focus on the dollar not being

6/15
preferable as a world reserve currency but a more equal arrangement between currencies, more reliance on Euro’s and Remnibi.

Now, when it comes to the SDR, we know speculations has been of XRP being the SDR or part of that.

7/15
The SDR is a basket of 5 currencies currently: USD, Euro, Yuan, Yen and British Pound.

I don’t see XRP being part of SDR for many years but I can see it in the future. To explain why:

Why do you have a basket of currencies?

8/15
So it is to ”minimize the risk of currency fluctuations.”

So, this is my thesis. If we would see XRP in the future becoming the global settlement asset, it would make perfect sense for it to be part of the SDR. Why? Because it would be what all other currencies are

9/15
exchanged in. The value would thus be extremely stable if all currency exchanges went through XRP. It would thus act as a basket of currencies and thus minimize exchange rate fluctuations.

Because of this I could even see XRP replace the whole basket but

10/15
I see that FAR away in the future. But it would make sense if it was the global settlement asset, the standard. But only then. So I would see that in many, many years away. But I could see it being part of the basket before then.

Many arrangements for the SDR has

11/15
been discussed. Even adding gold. The IMF is one of the biggest gold holders in the world.

Another reason why they might add XRP to the basket is because XRP is a neutral third party. The IMF is supposed to be a neutral third party as well.

12/15
A neutral third party asset has been proposed as the new world reserve currency, so XRP being part of that is not far fetched if it becomes the global settlement asset.

Lastly, let’s not forget the time Ross Leckow was asked if the IMF could hold crypto assets

13/15
in the future? And he got really uncomfortable and silent.

If the IMF wasn’t considering it, then why would he have acted that way?

Now, would other cryptos be part of SDR? Bitcoin?

14/15
I doubt Bitcoin being part of it considering how Christine Lagarde on several occasions has talked down on Bitcoin. It doesn’t seem likely to me. But who knows?

We will have to see whether XRP might be part of a future SDR but my take on it is that if you know

15/15
What a world reserve currency is supposed to include, it is not as far fetched as some make it seem.