Newly Map hints XRP’s Role as a Future World Bridge Currency

XRP may play a top role in bridging different countries’ CBDC in a possible global monetary reset.
The cryptocurrency is best suited for this purpose owing to its cross-border settlement capabilities.

XRP will likely serve as a world reserve and bridge currency in the future. Per a recently published Map, this proposition comes amid heightened discussions of a potential restructuring of the international monetary system.

XRP’s Role as Global Reserve and Bridge Currency

Crypto enthusiast Edward Farina highlighted the map in a post on the social media platform X. The map describes how coins like XRP can serve as a global reserve asset, with gold as an essential anchor. As a result, it challenges the long-running discussion surrounding gold as the cornerstone of a stable monetary system.

A map presents how $XRP could act as a World Reserve Currency and Bridge Currency 🔥 pic.twitter.com/ptskZ9aWB4

— EDO FARINA 🅧 XRP (@edward_farina) August 13, 2024

Gold has historically been seen as a reliable store of value and a hedge against inflation. However, its role in modern finance is increasingly being viewed through the lens of digital transformation.

The map outlines a tiered structure for global currencies. At the top of the rank is the SDR, an international reserve asset developed by the International Monetary Fund (IMF). Next on the rank are Tier 1 currencies, which may include the U.S. Dollar, Euro, Japanese Yen, and others from top nations.

Beneath these are Tier 2 assets encompassing Central Bank Digital Currencies (CBDCs). These assets would be connected to the currencies of different countries and issued by their central banks. This means bridge currencies like XRP can facilitate conversions and transactions between these government-backed digital currencies, allowing them to interact seamlessly across national boundaries.

The map implies that XRP could help speed up the conversion of other CBDCs. This expectation is based on the digital asset’s ability to provide liquidity and reduce friction in international transactions.

XRP’s role as a bridge currency was accelerated during COVID-19 due to difficulties in making cross-border payments. At the time, Ripple’s head of global banking, Marjan Delatinne, said XRP is well positioned to bridge multiple or different CBDCs.

XRP’s role as a bridge currency is crucial due to the multiple digital currencies that are used globally. XRP can help ensure interoperability between these digital currencies for efficient global commerce.

China’s Global Monetary Strategy

The map also focused on China’s strategic positioning in the global monetary ecosystem. According to the narrative, one tactic for influencing the world’s monetary system may be to amass gold. The map, however, refers to this strategy as a “gold deception,” suggesting that China’s goals might go beyond merely backing its currency with gold.

China’s approach involves utilizing its gold holdings, consistent with the larger plan of employing digital currencies. This could counter the dominance of the US dollar and impose greater control over the global financial system. As noted in our earlier report, China’s digital yuan is gaining momentum with a recent collaboration with the Bank of International Settlements.

Overall, critical functions of central banks would have to be altered to implement the proposed monetary system reset. The Ripple-associated XRP stands a chance to speed up transformation in the global monetary landscape.