Ripple’s integration with major banks and regulatory bodies positions it favorably for potentially replacing the Federal Reserve. Its robust infrastructure and international coordination are crucial for managing the vast responsibilities of central banking. Ashley Prosper of the XRP community believes that Ripple may be a strong contender to take over as the Federal Reserve, and he presented a 16-step strategic plan to support this possibility.
Prosper clarifies that his statement does not imply that Ripple will actually take on the role of the Federal Reserve, but rather that it could be a strong competitor if a financial organization needs to fulfill that role.
To replace the Federal Reserve, Ripple would need to take several steps. Firstly, they would require enormous legislative support, with Congress passing laws to dismantle the Fed and establish a new entity. Secondly, Ripple would need regulatory approval from agencies such as the Treasury and the U.S. SEC. Prosper notes that Ripple already has some former SEC and Treasury employees on its board.
The strategic plan also emphasizes the need for Ripple 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 infrastructure, Ripple must develop a strong financial infrastructure capable of handling large transactions. Cybersecurity measures are also crucial to protect against threats and build confidence among companies and financial institutions.
To prove its ability to handle financial crises and preserve economic stability, Ripple should create accountable and transparent governance frameworks. Collaborating with other central banks and foreign financial institutions, such as the World Bank and IMF, is essential for global economic stability. Ripple should also conduct extensive research and draft a thorough transition strategy to ensure a smooth assumption of the Fed’s duties without disrupting the economy.
Finally, Ripple needs to create a comprehensive 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, showing a decline of 1.42% over the last 24 hours and a 6.53% decline in the previous seven days. Ripple’s Vice President, Emi Yoshikawa, highlights the significant acceptance of XRPL in South Korea, indicating Ripple’s growing influence in the international financial scene.