Following Ripple’s achievements in the financial sector, XRP community member Ashley Prosper speculates that the company could become a viable contender to replace the Federal Reserve.
Despite the audacious nature of this speculation, the community figure outlined a 16-step strategic plan that could help Ripple achieve the milestone.
Prosper clarified that his commentary does not suggest that Ripple would replace the Federal Reserve. However, he argued that if a financial entity is required to do this, Ripple could be a top contender based on these criteria.
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Steps Ripple would need to take in order to replace the Federal Reserve….
1. Legislative Support: Enormous legislative changes would be required. Congress would need to pass laws to dismantle the Fed and establish a new entity.
(Like Fit21, etc)
2.…— Ashley PROSPER (@AshleyPROSPER1) June 25, 2024
Topping the list of requirements is legislative support. Prosper pointed out that the U.S. Congress must implement significant regulatory changes, thus dismantling the Federal Reserve and creating a single entity that could perform the functions of the central banking system.
The second step requires Ripple to obtain approval from multiple regulatory bodies, including the U.S. SEC and the Treasury. According to Prosper, some former officials from the SEC and Treasury are currently sitting on the Ripple board.
Monetary policy control is the third requirement in the plan. Prosper stated that Ripple must be able to control monetary policy, including inflation and interest rates, to become the leading contender to replace the Federal Reserve.
For the fourth requirement, the XRP community member recommended that Ripple integrate with the U.S. banking system to achieve the feat.
The fifth strategy requires Ripple to develop and maintain a robust financial infrastructure capable of handling large financial transactions.
Building Trust and Economic Stability
Notably, the sixth and seventh strategies mandate that Ripple implement top-level cybersecurity measures to protect against potential threats and build trust among businesses and financial institutions.
Prosper stated that Ripple must demonstrate its ability to maintain economic stability and effectively manage financial crises to potentially replace the Federal Reserve.
Additionally, he recommended that Ripple establish transparent and accountable governance structures to potentially replace the U.S. central banking system.
For the tenth plan, Prosper said Ripple must coordinate with other central banks and international financial organizations outside the U.S., including the IMF and World Bank, to ensure global economic stability.
Other Strategic Requirements
Currency issuance, lender of last resort, and expert hiring are essential catalysts to help Ripple on this journey. For the 14th recommendation, Prosper said Ripple must conduct adequate research to continuously bolster the U.S. financial system.
Also, he recommended that Ripple should create a detailed transition plan that could enable it to take over the Fed’s responsibilities without causing economic disruption in the country.
Lastly, Ripple must develop an effective strategy that will allow it to communicate benefits, changes, and processes with the public and international community.
Although Ripple has recorded significant achievements in the financial sector, which includes developing effective fintech solutions and partnering with top financial institutions for cross-border payments, the prospect of replacing the Federal Reserve is highly speculative with almost no chances of being a reality.
