Ripple update: XRP – The new reserve currency
We are amidst of the most exciting of times never seen before, at least in couple of generations. UBER, Amazon, Swiggy , Whatsapp and all other game changing technologies disrupting the respective industries for good. UBER is more valuable company than 100 years old automobile companies! So after all the important industries disrupted it was time for the King of industries to be disrupted.
**CASH IS KING.**
To Understand money more better, we need to know the ROOT of new age money.
There was a time before 400 Years when people used gold as medium to exchange goods or services. People use to pawn their gold to a particular gold smith in German and use to get GDR(Gold Deposit Receipt) simply a receipt to redeem gold when needed, but as dealing with gold as medium was not much practically comfortable, people started to use the receipt(GDR) to buy and sell goods and services, as every one recognised and believed the receipt was backed by gold with known gold smith. Once it was popular and became a practice among people to use receipt as medium to exchange value, few smart lads started to create same kind of receipt, now this became a problem to people and gold smith, that’s when historic change happened not only did the goldsmith found a way to create receipts which were not easy to forge also he saw opportunity to create more receipts than the gold he held, that’s when RESERVE BANKING started and from there he perfected the art of balancing the number of receipts which did not create inflation at the same time enough receipts were available in market. The receipts are called as currency in modern days
Once they perfected the art of reserve banking, they with new found wealth and knowledge kept introducing Reserver Central Banks all over Europe and World with the help of England. England which colonized many countries was funded by the same bankers who made fortune with and Gold, Diamonds looted from world and introduction of LSE(London Stock Exchange).
In early 1900 as England was loosing control and USA being the next World power, these banker had to capture US financial system, with hook and crook(for inquisitive minds a few bread crumbs, sinking of titanic, brenton woods) they introduced Federal Reserve Bank in USA
When the whole world was fighting, USA did not participate in those wars instead they choose to sell arms to all nations and strategically they accepted payments only in GOLD, so by end of two wars almost entire planets gold was with USA( Fort Knox).
After world war was over nations did not have gold to trade between nations but as every one knew US dollar was backed by gold so every nation started using dollar as international currency as part Brenton-Wood( 1944) agreement and that made USD very valuable. Slowly USA started to export inflation to other countries and one fine day they could print more USD as there was not enough GOLD to back their USD, so president Nixon did
>“ unilateral cancellation of the direct international convertibility of the United States dollar to gold.” — >!1971!<
which means no nation could convert USD to gold which was the underlying faith for nations to accept USD as international reserve currency. France started to question this move and followed by other nations. That’s when USA had to think of creative solution for this crisis.
**OIL — The Black Gold and SWIFT**
With help of Saudi Arabia(OPEC) USA had forged a deal where only Crude Oil would be sold in USD, the technology or payment rail was SWIFT. SWIFT used USD as underlying currency to transfer value between nations. So if some bank wanted to send money India to Japan they had to use SWIFT payment network which in turn converted INR-USD and from USD-JPY
>SWIFT was founded in Brussels in>! 1973!<
Many countries tried to break the the reserve currency status of USD, but everytime it was not very successful and the countries which tried that had to face server retribution from USA, as USA had built a very powerful military-industrial complex through out the world.
**Asian currency crisis**
Thailand triggered the Asian financial crisis by delinking the baht from the US dollar. The Bank of Thailand cut the baht loose on 2 July >!1997!< after the currency , had been under sustained attack by speculators(Hedge Funds from USA and London). This crisis spread to Asia.
**War on terror**
When Iraq wanted to sell their oil in Euro by ditching USD, not only Saddam Hussain dreamt of it, he also went and commissioned a Oil Trade Exchange with high speed internet and he also had done pilot testing, that’s when September 11 attack happened and America had to go for War on terror and they believed Saddam had Weapon of Mass Destruction(WMD) and they destroyed him and his ambitions to trade in Euro
Leaders from Venezuela, Libya(Gaddafi) and Iran tried the same but ended up dead or wounded very badly
China has been watching this and they knew it was not easy to bring down USD as they ere the major holder of USD as foreign reserve and they would suffer very much, at the same time USA debt was increasing massively which means, logically USA could not pay interest for at least a century, so China started a long strategic move where they slowly replaced USD with Yuan like asking euro zone to accept Yuan, giving neighboring countries loans in Yuan and One Belt One Road(OBOR) initiative, finally declared PetroYuan which means Oil could be purchased in Yuan which was supported by Russia, Iran and Saudi.
USA could show their aggression as they did with other countries but as China is super power with Russia’s support so they could not use the old strategy.
**But USA always had innovative way to handle dollar crisis**
>!The innovative solution — Cryptocurrencies (Blockchain Technologies) or Bitcoin!<
In 2008, Bitcoin was invented and in over a decade it died many deaths but always came out strong. Cryptocurrency are not backed by anything but, only we all collectively believe and accept there is value in it. It’s non-mutable decentralized ledger where all the transactions are recorded and approved by major of the network participant. It’s not centralized like Bank where database can be hacked or brought down. After a decade the technology is now accepted widely and found some serious application in real world.
Bitcoin could not scale or live up to expectation to be today’s currency as it is pathetically slow, high cost of transaction and nearing 51% problem as most of the miners are from China
**XRP new world Currency?**
Interestingly there’s a cryptocurrency which is decentralised but controlled by private entity and trying to solve real problem i.e sending money between countries seamless , real time, transparent and dirt cheap. It’s replacing SWIFT (The old payment rail for petrodollar). SWIFT was designed 40 years back, with SWIFT system trillions of dollars are stuck with banks doing nothing which will be released once Ripple replaces SWIFT. Already people in Japan and South Korea, Singapore, USA, Australia and UK have started to use XRP as payment method in day today transaction. XRP has the potential to be currency of every denizen of planet earth. Already central banks and monetary authorities tripping over each other to integrate ripple.
Ripple has wholistic solution to be a global liquidity provider and has been making right moves with IMF, World Bank, Central Banks, Authorities and regulators through the world and slowly and steadily it’s progress is on course.
XRP is set to become the new world order international currency. At last, money is changing and will change so fast that you will even not realize that every thing change as it happened with photography.
>***Future is not seen with eyes but an inquisitive mind.***
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
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