In one of his recent tweets, Ripple CEO Brad Garlinghouse said that governments have now taken a serious look at the blockchain after declining technology as “scam” for years.
Garlinghouse also added that while the US dollar will not be overturned by gold, yuan or cryptocurrencies anymore, it is getting weaker.
He stated that cryptocurrencies have been up to 80 percent in 2020 so far, but despite the great liquidity observed during the market collapse in March, the dollar has fallen only three percent so far.
Garlinghouse referred to a new Bloomberg article that explores the advantages and disadvantages of potential displacements for the dollar, whose applicability as a value store during the ongoing crisis has been questioned.
The Federal Reserve has pushed $ 3 trillion since February to support the troubled US economy, cutting interest rates to zero and promising to keep it at this level until 2022.
This may result in the dollar’s loss of the global currency in the near future:
“Real concerns about the longevity of the US dollar as a reserve currency began to arise.”
While Goldman calls gold the “last resort currency,” Bloomberg’s Garfield Clinton Reynolds stated that his supply was unable to meet economic challenges.
China poses a real threat
Garlinghouse urged US lawmakers and regulators to compete with digital currencies in May to compete with China.
While cryptocurrencies like Bitcoin are very volatile, China’s central bank digital currency named “DCEP” can upgrade yuan to a new reserve currency unless the dollar is digitized.
Garlinghouse’s concerns are particularly understandable, as the resulting CBDCs make XRP completely unnecessary by separating it from the cross-border payments industry.