During a Twitter discussion hosted by community member XRPStewie, David Schwartz was asked if digital assets can be used as full-fledged reserve currencies and if they can coexist with the US dollar. Schwartz believes that this scenario is indeed possible.
Ripple’s CTO explained that the US dollar now dominates as a reserve currency for most countries. However, many states are exploring alternatives, including the introduction of digital assets such as XRP, which could open up new opportunities and change the currency landscape. This scenario can be realized if countries recognize the restrictions associated with dependence on the US dollar, Schwartz believes.
He emphasized that small financial institutions often prefer software solutions that were not developed by large banks. This is due to fears that large players can impose their preferences, Schwartz explained.
However, not everyone shares his point of view. For example, Cardano founder Charles Hoskinson previously stated that an international currency should be both a medium of exchange, settlement and savings, but even bitcoin does not have these three characteristics.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
