Ripple’s potential to replace the Federal Reserve is strengthened by its integration with major banks and regulatory bodies. Its strong infrastructure and international coordination make it well-equipped to handle the responsibilities of central banking.
Ashley Prosper from the XRP community believes that Ripple could be a strong contender to take over as the Federal Reserve. While this idea may be bold, Prosper presented a strategic 16-step plan that could potentially enable Ripple to reach this milestone.
Prosper clarified that his statement does not imply that Ripple will actually take on the role of the Federal Reserve. However, he argues that Ripple could be a strong competitor if a financial organization were to fulfill this role.
In order for Ripple to replace the Federal Reserve, several steps would need to be taken. Firstly, enormous legislative changes would be required, with Congress needing to pass laws to dismantle the Fed and establish a new entity.
Secondly, Ripple would need to obtain clearance from regulatory agencies such as the Treasury and the U.S. SEC. Prosper claims that Ripple already has some former SEC and Treasury employees on its board.
To emerge as a main competitor to the Federal Reserve, Ripple would need to have control over monetary policy, including managing interest rates and inflation. Additionally, Ripple should establish links with the American banking system.
In terms of financial infrastructure, Ripple would need to create and maintain a robust system capable of handling large financial transactions. Cybersecurity measures would also need to be top-notch to protect against potential threats and foster confidence among companies and financial institutions.
To demonstrate its ability to handle financial crises and preserve economic stability, Ripple should establish accountable and transparent governance frameworks. It should also collaborate with other central banks and international financial institutions, such as the World Bank and IMF, to ensure global economic stability.
Furthermore, Ripple needs to conduct thorough research to continue supporting the American financial system. A comprehensive transition strategy should be drafted to ensure a smooth handover of the Fed’s duties without disrupting the nation’s economy.
Lastly, Ripple should create an effective plan to communicate the advantages, modifications, and procedures to the general public and the global community.
In terms of market data, XRP is currently valued at around $0.4672, with a 1.42% decrease over the past 24 hours. There has been a bearish trend with a 6.53% decline over the previous seven days.
Ripple’s Vice President, Emi Yoshikawa, has highlighted the significant acceptance of XRPL in South Korea, indicating the company’s growing influence in the international financial scene.