Ripple (XRP) growing presence in the global banking industry can no longer be ignored. It is clear that Ripple (XRP) is becoming the go-to technology for global cross-border payments, slowly replacing SWIFT. However, one recent move seems to be taking the ripple story to another level, and that’s interest by the Federal Reserve. One of ripple’s top executives has been elected as a member of the Federal Reserve faster payments task force steering committee. The primary goal of this committee is the adoption of faster payment capabilities in banking. This interest by the Federal Reserve leads to one curious question, is ripple (XRP) set to become a single world currency? If the Federal Reserve believes in ripple as a technology that could make payments more efficient, what would stop them from adopting it as the next currency, just like the dollar? To understand this you need to understand what makes the dollar tick.
One of the reasons why the dollar is adopted as the primary currency for foreign transactions by all nations is because it is backed by the Federal Reserve, the central bank of the most powerful nation on earth. Now that the Federal Reserve is warming up to ripple, there is a good chance that they would back it as the currency of the digital age. If that happens, all other nations across the world would follow suit, and Ripple (XRP) would pretty much become the next dollar.
Secondly, more countries are calling for a currency that is not connected to individual nations. Starting in 2009, China and Russia began calls for a new world currency, one that is not connected to any country. Given that such calls are likely to persist as global geo-politics become more complex, it is inevitable that at some point, something else will rise, and take the position of the dollar. One currency that has all the attributes that make it a prime candidate for such a role is Ripple (XRP). That’s because ripple has so far been adopted by several banks all across the world, indicating that its acceptance is becoming universal. On top of that, ripple (XRP) unlike ripple the company is a decentralized cryptocurrency. This makes it universally acceptable, while at the same time not being under the control of any nation.
Moreover, ripple is quite efficient as a currency that can be used in global payments. That’s because it is instant, highly divisible, and cost-effective in cross-border payments. These are attributes that make for a currency in a world that is increasingly interconnected and digitized. As a world currency, Ripple (XRP) would open up the world economy, and create more wealth than ever seen before. It would be just like how the U.S and the dollar, opened up the global economy after World War 2.
All these factors point to a future where Ripple (XRP) is poised to become the next world currency. Once that happens, its value will be multiples of what it is worth today. A single coin could be worth 100s of dollars, when it is supported by the entire global economy.