3 hours ago
A caller proposal submitted to the U.S. Securities and Exchange Commission’s (SEC) newly-established Crypto Task Force by a Maximilian Staudinger makes the lawsuit for XRP arsenic a “strategic fiscal asset” for the United States (using immoderate precise questionable mathematics and logic).
I’m present to archer you that XRP is not a strategical plus and that the logic successful this connection is dubious astatine best.
In the proposal, Staudinger states that $5 trillion is locked up successful U.S. Nostro accounts (accounts that banks usage for cross-border payments). And helium claims that if definite regulatory conditions were created — including the SEC classifying XRP arsenic a outgo network, the U.S. Department of Justice (DoJ) providing ineligible clearance for banks to usage XRP, and the Federal Reserve mandating that banks usage XRP arsenic a liquidity solution — past 30% of this superior ($1.5 trillion) would beryllium freed up for the U.S. authorities to bargain 25 cardinal bitcoin astatine $60,000 per bitcoin.
So, let’s interruption down wherefore this makes small sense.
First, Nostro accounts are simply slope accounts that U.S. banks clasp successful overseas countries. I’m not definite what benignant of logic includes these home banks turning implicit the U.S. dollars that XRP would theoretically regenerate to the Federal authorities truthful that these dollars could past beryllium utilized to get bitcoin connected behalf of the government.
Second, the connection doesn’t connection details connected however these home banks would get the XRP that would regenerate the dollars. It lone seems logical that they’d person to acquisition the XRP, starring to XRP absorbing this $1.5 trillion, not bitcoin. Even if Ripple, XRP’s issuer, wanted to simply springiness these banks XRP to use, this inactive wouldn’t work, arsenic it lone holds astir $100 cardinal successful XRP — acold abbreviated of $1.5 trillion.
Third, adjacent if bitcoin’s terms were to dip to $60,000, the terms would statesman expanding instantly arsenic the U.S. authorities began purchasing the 25 cardinal bitcoin.
Lastly, there’s a hard headdress of 21 cardinal bitcoin (and approximately 4 cardinal person been lost), which is simply a well-known information successful the Bitcoin oregon crypto space. Therefore, it’s rather silly to suggest that the U.S. authorities could bargain 25 cardinal bitcoin. If the writer were adjacent a half-serious person, helium mightiness person suggested that the authorities bargain 15 cardinal bitcoin astatine $100,000 per bitcoin (though the mathematics inactive wouldn’t enactment out).
Given however faulty the logic down this connection is, it’s hard to see XRP a strategical asset. Plus, wherefore would the U.S. authorities bash truthful erstwhile 2 thirds of the proviso is inactive successful the hands of the enactment that issued the asset? It doesn’t marque overmuch sense.
Bitcoin, connected the different hand, is simply a globally distributed plus that galore astir the satellite usage arsenic some wealth and a store of value. Plus, the Bitcoin web is governed by tens of thousands of nodes and is virtually impenetrable, acknowledgment to the astir 0.4% of the world’s energy that protects it. (The XRP web is governed by 828 nodes and isn’t protected by immoderate magnitude of energy.) Theses factors marque bitcoin a logical reserve asset, which is however the U.S. authorities now officially classifies it.
So, hopefully, the SEC already understands what I’ve outlined successful this portion and doesn’t walk overmuch clip adjacent considering Mr. Staudinger’s proposal.
This nonfiction is a Take. Opinions expressed are wholly the author’s and bash not needfully bespeak those of BTC Inc oregon Bitcoin Magazine.
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