Thread by @UtilityFTW

🚨🔥THE WORLD WILL USE A NEW DIGITAL CURRENCY AS A NEUTRAL BRIDGE FOR GLOBAL CROSS-BORDER SETTLEMENTS🔥🚨

It will not be..
❌the Digital USD
❌the Chinese Digital Yuan
❌any PoS protocol

It will be..
✅BACKED BY NOTHING
✅100% neutral
✅#XRP and #XLM as global #stablecoins

🧵

The US Dollar has been the backbone of global monetary flow for decades.

In 1971, the US officially dropped the gold standard. This step "removes the underpinnings from the worlds money"

1/24

This change meant that the global payment currency no longer possessed any intrinsic value. Its value was solely derived from the confidence of the world's economies that the USD was secure and stable enough to be held and transacted with.

2/24

With the intrinsic value gone, it meant that the US was free to print and distribute dollars globally. However, this was a double-edged sword as it granted the US unprecedented global power, but at the cost of a slow degradation in purchasing power.

3/24

The power of the dollar's monopoly means that the US/G10 has the ability to severely restrict a country's ability to function in the global economy.

The world is waking up.

4/24

Triffin's Dilemma exposed the flaw in having a country's sovereign currency as the main reserve.

"Providing reserves and exchanges for the whole world is too much for one country and one currency to bear." - Henry Fowler, Secretary of the Treasury

5/24
imf.org/external/np/ex…

However, the US and the world have become addicted to money printing, and like a drug addict, the more they use, the more they become dependent on it. Eventually, this leads to a collapse, of both the USD and of those economies carrying the unstable money.

6/24

Printing money since the 2009 Global Financial Crisis, and especially since the beginning of the COVID pandemic, has put the world in the grips of high inflation and instability.

Again, the world is waking up.

7/24

What once made the USD powerful has been lost; confidence is low, and risk is high. The world's economic powers are waking up to the systemic faults of the USD hegemony, and they are seeking their exit.

8/24

They are not waiting for the system to collapse; they are making their exit and plans for the inevitable. China appears to be front-running a new option, but the question remains: is it viable?

9/24

The Chinese/BRICS option for cross-border payments could soon be more attractive than the USD, offering less risk, higher confidence, and possibly backed by real value.

10/24

unherd.com/thepost/the-ne…

Based on the information presented above, I will now propose a series of assertions that I believe lead to the sole resolution capable of satisfying all nations with respect to a new digital bridge currency. Do your own research. This is not financial advice.

11/24

A New Digital US Dollar will not be accepted as a settlement option, as it does not address Triffin's Dilemma or the problem of excessive money printing, and the world is no longer willing to accept the power that the USD reserve status grants the US.

12/24

The New Digital Chinese Yuan will not be accepted as a settlement option due to also being subject to Triffin's Dilemma, and the international community does not trust China with the power that comes with being a reserve currency any more than it trusts the United States.

13/24

There will be no "reserve currency", only a neutral bridge currency with no backing. The value of this currency will be based solely on its utility demand as a bridge, and no country will have the ability to exert control over it to the advantage or disadvantage of others.

14/24

The US understands that the USD's days as a reserve currency are numbered. Rather than allowing a competitor to emerge, the best approach is to pioneer a neutral solution via "creative destruction." This solution must be deployed BEFORE the USD loses its global influence.

15/24

The digital bridge currency will be a #stablecoin, meaning its value won't be influenced by the volatility found in the current crypto market. Instead, its value will be determined by the constant and predictable flow of international trade and cross-border transactions.

16/24

The digital bridge currency will not utilize any form of incentive system, such as PoS, dPoS, or bPoS, as it would introduce friction to incentivize stakeholders and may result in network power being concentrated among the wealthy and influential.

17/24

https://twitter.com/UtilityTheory/status/1490181556538728454?s=20

The future digital bridge currency must provide operational decentralization, where "the best incentive is no incentive." The only protocols suitable for this task utilize FBA/fBFT.

18/24

https://twitter.com/UtilityTheory/status/1490181563232886787?s=20

Without staking incentives, actors or groups within these networks cannot exert power over others. The countries of the 🌎 will not accept any other solution. Therefore, XRP and XLM are the only solutions that can address the current problems.

19/24

https://twitter.com/UtilityFTW/status/1632475162347208704?s=20

The current narrative is that the US is behind. That China is overtaking with their digital solution. But the Free World has a plan in the making for decades. The new solution will present itself at the right time, before the collapse of the old system.

20/24

While the US, EU, IMF and BIS still have the greatest influence on the worlds financial system, they will implement a new system that will become the global standard for payments. This standard will lead the way for the utilization of the new bridge currencies.

21/24

Things will seem to build slowly but then like the flip of a switch the shift will happen suddenly. There are MANY distractions to take us off this course. Prepare for events that could lead to either the delay or acceleration of adoption.

22/24

The US will lose control over the bridge currency. But this will free the world from Triffin's Dilemma, providing a better option than the Digital Yuan. It will liberate the world from a system of control and bring a "level playing field."

23/24

Friends, look beyond the promising features of your preferred project. Focus on simplicity & design. Match the fundamental requirements of the bridge currency to the protocol. There is room for many other projects, but the time is not now. Reinvest.

24/24

https://twitter.com/UtilityFTW/status/1632475022525878273?s=20

https://twitter.com/JoelKatz/status/1484337056788586498?s=20