Yesterday, a U.S congressman made a statement to the effect that the U.S should ban the mining and trading of cryptocurrencies. His argument was that cryptos can be used by rogue nations to by-pass U.S sanctions. While this statement applies to all cryptos in general, it connects quite well to the issues that XRP is facing at the moment, especially the risk of being declared a security. That’s because while the crypto market has grown tremendously as a whole, none has come as close to disrupting the global order as XRP (XRP). XRP is taking aim at global banking, and seriously threatening to outcompete SWIFT.
But the thing with SWIFT is that it is not just a finance tool, it also happens to be a tool that the U.S government uses in exalting global geopolitical control. That’s because whenever the U.S puts sanctions on a particular nation, part of what it does is disallow the concerned country from using SWIFT. This punishes that country because it effectively removes it from international commerce. Now, if XRP (XRP) takes over from SWIFT, chances are that this power will be lost. That’s because it’s difficult to sanction a country, when the system being used is decentralized. That effectively takes away a huge chunk of the bargaining chip that is used in global politics and global power plays.
As such, XRP (XRP) could actually continue to face hurdles until the powers that be feel that it can take the same role as SWIFT, in maintaining the geopolitical balance already in place. For it to fit into such a position, XRP (XRP) would best operate as a security. That’s because when it’s a security, it would be easier for ripple to make decisions that are compliant with whatever is at play at the geopolitical level. The only problem is that this would actually lower its reach globally, since banks would not have the need to shift from one centralized system to the next.
On the flipside, if it is declared a decentralized crypto, there is a good chance that it might struggle for a short while in the U.S. That’s because like the rest of the crypto market, it is taking power away from centralized systems that cut across politics and economics. These are systems that have been there for centuries, and will not go down easy. That’s why the statements such as those made by the U.S congressman are quite heavy. They bring forth the conflict between a new system, which is giving power to the individual, and old bureaucratic systems that run the world as we know it today.
One thing is certain though, change always wins. New systems are always resisted, but they always prevail for the efficiency that comes with them. As such, XRP (XRP) and crypto in general may struggle now, but in the end it will win. People have already tasted the goodness of instantaneous payments that comes without a central authority. That’s pretty much irreversible, and will shape life in the 2020s and beyond.