Ripple’s Network to be the “Federal Reserve” of the New Financial System, Analyst Says
Ripple could play a role similar to the Federal Reserve in the emerging financial system, according to Wall Street analyst Linda Jones.
The BRICS countries are rapidly moving toward the goal of abandoning the US dollar, which would be a major blow to the North American country. For Wall Street analyst Linda Jones, this does not necessarily mean that Washington will lose its dominance. In the new scenario, Ripple’s network has a huge role to play, she argues.
During her appearance on the Good Morning Crypto podcast, the analyst offered some points of interest in the new global financial relationship. He expressed that the BRICS coalition is not against the U.S., but against the unilateral dominance of a fiat currency throughout the financial world. Therefore, their plans are focused on new technologies that will make the economic life of these economies independent.
Removing the dollar from this equation seems inevitable, according to the expert, and the analysis now is what the U.S. response will be. In her opinion, the Federal Reserve (Fed) does not have much to oppose the initiative of the aforementioned countries. In this context, a new currency should be created in the United States and it should be backed by real assets.
She emphasized the need for a new financial system based on real assets. Accordingly, he comments that the era of trust-based systems must give way to the era of truth-based systems. This is where Ripple’s network, the XRP Ledger (XRPL), comes into play.
Ripple’s Network to the Rescue of U.S. Global Financial Leadership.
In Jones’ view, XRPL has great advantages to become the epicenter of the new post-dollar financial equilibrium. He explains that a new system must operate on a foundation of accountability. Unlike Bitcoin, Ripple’s founders are not anonymous and the network has a contact center in case of inconveniences.
She explains that transparency, auditability, and accountability are necessary in any entity behind the new system. After laying out these elements, the analyst jokingly states that Ripple will be like the Fed of the new financial system. It is worth clarifying that they could not be more different. Ripple is a private crypto company with plans to go public.
In any case, Jones says that Ripple’s network has the potential to help the United States in the event of a collapse of the dollar. In such a scenario, several entities could emerge that together could maintain the balance and leadership of the North American country. Likewise, he stresses that in the hypothetical collapse of the fiat system, the dollar would not completely lose its value.
At this point, it is important to note that the demand for the dollar would increase in an apocalyptic scenario such as the one proposed by Jones.
All in all, the analyst commented that Ripple’s position would allow the U.S. to maintain its leadership role, and also expressed confidence that the U.S. dollar would not completely lose its value before the transition, as such a collapse would be a matter of national security. Ultimately, the analyst sees a parallel system emerging in which different financial systems operate on the XRP ledger.
Several companies in the crypto sector are presented as potential saviors of the dollar. Among this group is Tether, which claims that its USDT has the ability to boost confidence in the greenback.
By Leonardo Perez