- An analyst believes XRP could be the key to ending the US-China trade tension.
- This comes amid speculation that the BRICS’s incoming gold-backed financial system would be underpinned by the XRP Ledger (XRPL).
XRP Can End the US-China Trade Bottleneck
According to Versan Aljarrah, financial strategist, crypto investor, and founder of Black Swan Capitalist, XRP can end the ongoing trade war between the colliding superpowers, the USA and China. Its decentralized nature makes it a neutral reserve asset that can serve each nation’s needs without advancing any political agenda.
In addition, the analyst noted that bottlenecks in global trade stem from factors such as reliance on the dollar or the yuan, banking delays, and currency risks. These are things XRP can fix with its high scalability, efficient transaction fees starting at 0.00001 XRP or around $0.00002, and three-second to five-second settlement times.
The BRICS Going Back to the Gold Standard with a Digital Twist
The analyst’s latest commentary comes hot on the heels of discussions about the BRICS considering a return to the gold standard. None other than the joint website of the ministries of foreign affairs of the international cooperation’s member states had raised the possibility of adopting XRP to bypass the US dollar’s dominance and the SWIFT financial messaging network’s sphere of influence.
The portal claimed Russia and China have been actively expanding their gold reserves. The two are also exploring moving their value via blockchain or using tokenization to address the pain points of dealing with physical gold in cross-border trades.
Both nations reportedly have XRPL on their sights to circumvent the US dollar and SWIFT’s political rails. For BRICS, the measure removes Russia and China’s concerns about the USA’s ability to freeze their reserves at a moment’s notice. Meanwhile, it offers other nations such as India, Brazil, and South Africa financial independence by offering leverage to their financial systems.
XRP has already shown significant market penetration in Brazil, making the BRICS transition easier. Recently, Ripple has strengthened its presence in the country through a Unicâmbio partnership, integrating its XRPL-focused solutions into the financial institution’s cross-border payment systems. The nation had also overtaken the US by approving its first XRP exchange-traded fund (ETF).
BRICS believes XRP aligns with its de-dollarization efforts through its fast, neutral, and censorship-resistant cross-border payment infrastructure. The token establishes a bridge for these nations’ transfer of value without requiring the creation of a new token. Moreover, it would help settle trades backed by neutral assets, such as gold.
BRICS Thoughts on Bitcoin and Ethereum
Furthermore, BRICS highlighted that XRP stands out from Bitcoin’s (BTC) volatility and Ethereum’s (ETH) congestion. This makes it an ideal infrastructure for the international organization’s new payment system.
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