XRP Secret Plan *Shocking*

Added: 2026-05-05

[00:00:00]Do you believe that there can be two uh existing world reserve currencies to I mean to to simultaneously exist?

[00:00:13]I I do and I think that could happen. I think it's quite realistic that a lot of the world is just done with the dollar as the reserve currency currency. I think and I think that there's a lot of places that are are willing to try something else. And you know, one of my one of my scenarios and I don't think again I don't think it's going to play out quickly but like one of my wild case success scenarios for a digital asset is if countries start to realize that the US dollar is not going to be the reserve currency forever. Other things are going to be the reserve currency and and the same thing that we saw with banks. Like people when I when we started selling software to banks, people would say to me, you know, why would a bank use something that you like you guys were selling them when they could use something that was like made by banks? And what they didn't realize is that you know, only like 10 banks in the country in the on the planet are Deutsche Bank, HSBC, Credit Suisse, JP Morgan Chase, like the ones who would build a system that the entire planet would run on. For the rest of the banks, that's 6,000 smaller banks, those are their biggest strongest competitors.

[00:01:16]Those are the entities they hate the most. They would not want to use the system built and maintained by them because it's going to be biased in favor of them, their biggest and strongest competitors. And I think the same thing could happen to nations. Like every nation would love for their currency to be the world reserve currency. That's helped the US, you know, that's grown the US economy quote unquote unfairly by leaps and bounds for decades and every other country like yeah, we'd like to have the world's to be the world's reserve currency. But the only countries that could possibly pull it off as the US holding its position, you know, maybe the EU, maybe Russia, you know, maybe maybe one or two others.

[00:01:50]But realistically, most countries know that if there's going to be a new world reserve currency that's a country's currency, it's not going to be them.

[00:01:57]And so they might actually prefer a currency that nobody can control to one that's controlled by their largest geopolitical rivals.

[00:02:05]And so that's like what I think is the biggest possible success scenario for a for the for a digital for you know, for digital assets.

[00:02:13]If these countries are like okay, well, the US dollar can't hold on forever, but it's not going to be our currency because no one's going to want to repeat the US dollar scenario, you know, nobody but the EU wants the EU to replace the dollar, right? Nobody but Russia wants the ruble to replace the dollar. Nobody but China wants to you know, the new wants to replace the dollar. So maybe they could settle on a currency that nobody control could control rather than one controlled by their most powerful geopolitical rivals. So if you want a success scenario, that's the one that I think is the most likely. But the money question is how do you get everybody to agree?

[00:02:47]Well, I mean they might agree on they might agree if the alternative is that their geopolitical rivals force some new replacement for the dollar that that's not, you know, that that that's just a if they just replace, you know, the old boss with a new boss.

[00:02:59]If the choice is no boss.

[00:03:01]You know, if that happens to make a bunch of cryptocurrency people rich, I don't think that's going to they're going to see that as too much of a minus.

[00:03:06]Can I show your face or not? Yeah. Yeah.

[00:03:08]Hi, we're here at Sibos and this gentleman is taking his time to um answer a couple questions about blockchain and if it's going to be implemented in the banking system. So can you let us know how Swift is going to use blockchain for sending money?

[00:03:21]I'm not sure how how Swift is going to do it but for sure they will.

[00:03:25]It's on its way and we are doing trials on it. Very good. And um Do you know about on-demand liquidity and DLT? Yes. Okay. And do you know about a company called Ripple and are they being used?

[00:03:37]>> Ripple, yes, of course we do. Oh, wow, that's amazing. Do you know about bills of lading going to bills of e-lading in the UK? We are not involved on that.

[00:03:44]Okay, but you know about it being used on the blockchain? Trading is going to be on the blockchain? We have listened about it but we are not involved in Right. Are you connected with Ripple in any way, a partner with Ripple? Not yet.

[00:03:54]Not yet. That's a very good very good answer. All right, I really appreciate your time. All right. You mentioned the speed of cross-border payments and the opaqueness of that process and I I guess there it's also error-prone to some extent with Swift.

[00:04:08]Um Santander seems to be trying to approach it with a partnership with Ripple. Just curious what your thoughts are on that. So um I I do think that of uh the use cases out there, um cross-border is one of the most compelling. Uh we know that intermediation chains cross-border are long and uh quite opaque and they're slow and uh they can be quite costly. Um so uh my sense is that um technology uh with appropriate safeguards um could make a material impact and and likely will. And it may well be through a partnership model. I don't want to pronounce on any particular approach um but there are a variety of partnerships out there that are trying uh to innovate and to uh reduce frictions and increase transparency for those cross-border transactions. And my sense I'm I'm fairly optimistic that there are some good solutions out there um that don't necessitate a global uh stablecoin. So give me a specific example of who's going to use it. So one of the things we've always said is I don't think banks will be the first customers. We've talked about payment providers and so we have run pilots out there with the MoneyGrams, Western Unions, MercuryFX, Qualyx, a couple of others and those are payment providers that have massive treasury operations, uh you know, using the you one random example, you you have a payment provider that has hundreds of millions of dollars of negative working capital because they've taken their dollars and pesos and they've pre-funded and they've they've pre-funded the accounts so they go into Mexico. They have once a week, let's say they'll wire $10 million to Mexico and then debit debit debit debit along the way. Now sometimes they overfund, sometimes they underfund. The ability to have real-time liquidity is transformational. You know, the the global pre-funded at what are called nostro vostro relationships, it represents something on the order of magnitude $10 trillion. dollars.

[00:06:05]If we can make that more efficient and more useful, we can actually accelerate the engine of commerce kind of on a global basis. How many of you know the difference between payment and settlement?

[00:06:14]Not too many. So oh, a couple. All right, so let me just just give you just a high level on this. I go to a a restaurant and I pay with my Visa card and they let me go and they don't call the police saying that I left without paying for my food. That's a payment but I still have to pay my credit card bill and somebody still has to wire money to the restaurant, right? Or ACH or whatever payment system they use. It has that payment has not been settled.

[00:06:34]Traditionally, payment and settlement have been completely bifurcated into completely separate systems. Swift is a payment system that doesn't do anything with settlement. And the problem with that is it makes it hard to do a good payment because like you don't know if the receipt you don't you can't check the validity of the recipient. You don't know necessarily what the fees are going to be, what the exchange rate's going to be when the payment settles. So we built a system that and the only reason they've been separated in institutional payments is historic. These systems date back from the old days when people had giant wheels of magnetic tape and the tape was like on the bank's transaction computer during the day and someone would physically carry it over to the settlement computer that talked to the other banks at night. And there was no way to settle during the day because the tape had to be on the computer that was handling the bank's transactions. It had to go to the settlement computer when it was done. Um I'm not joking. I'm serious. If you if you you look at your glitzy like front end application for your bank and it's all really cool and you can access it on your phone and it's all really, you know, it's it's 21st century but you scratch just a couple of layers below the surface and it's like you took a time machine. If you're lucky, you're in the the mid 70s mid to late 70s. Like that's when these systems that plumb the movement of money were built and they are breaking down. Make make no Even if blockchain completely fails, even if all cryptocurrencies are a bust, the payment world is going to change because it's just it's it's ter Payments are a multi-trillion dollar problem and it seems like cryptocurrencies are just naturally suited to make payments better. And and specifically, we kind of focused on cross-border international payments, not because domestic payments are great but because it's it's they're cross-border payments are the worst. Like if you anyone who's made an international payment probably has stories of of bad experiences. And so the worst the thing you start with, the less amazing you have to be to be better. And I think like I think we can eventually be amazing and sort of take over the payments world but we're not going to be there day one. And so we if we can't you know, if we can't succeed against the worst part of the problem, why we why are we earliest focus what and I think that kind of matured between 2011 and 2014 this kind of focus of like we really need to solve payments. Like pay it and if you think about any other use case, you think about an NFT. Well, I want to buy it and I want to sell it.

[00:08:39]You know, think about a loan. Well, I want to pay the loan back and I want to get paid like the amount of money I borrowed. Like all of these other use cases need great payments and so we just sort of laser focused in on payments.

[00:08:50]Like people are still not using cryptocurrencies for payments. Like let's be honest. Like that's where the product market fit is really good and they're not uh there's a lot of volatility which I think it's and I think we do think that like that's going to start to go away. Like the logic of economics is it has to. Like you can't really have a highly volatile asset just because this volatility is a profit opportunity and so somebody should be turning that volatility into revenue. We have massive pools of liquidity now.

[00:09:16]Like you know, the trade volumes are enormous. So I think I think we are set up for the next couple years. I think one one sign is like giants like Bank of America, you know, JP Morgan are starting to You have to be careful with them because they want to seem like they're on the forefront of technology but also they're very successful companies. So like if they could push stop on technology, they would. You know, like if you you know, if you were one of the top five banks in the world, you don't want anything to change. You want the world to stay exactly the way it is and most of your hyping of technology is going to be defensive. But if you look like their their client their customers are really recognizing the potential of these technologies and they're realizing that they are going to have to adopt them if they want to remain relevant. You know, there's there's the story of you know, Apple eating the music industry. Sony could have made the iPod but Apple did. And I think nobody wants to be in the position that, you know, to have the technology industry eat finance. You know, none of the established companies want that to be happening. And I think Ripple through the XRP ledger is right at the nexus of that convergence of these DeFi technologies with institutional adoption and focusing on, you know, the specific problems that are necessary like like I said like sanction screening and other other things that institutions are going to have they're going to have to have they're going to have to have if they're going to be part of this ecosystem.

[00:10:26]>> [music] [music]