The proposal presented by Maximilian Staudinger within the scope of the new crypto currency task force of the US Securities and Stock Exchange Commission (SEC) suggested that the XRP should be considered as a strategic asset in the financial system. According to Staudinger’s claim, 30 percent of US banks’ nostro accounts of $ 5 trillion, ie 1.5 trillion dollars, can be released with the use of XRP. However, this claim led to controversy due to both technical infrastructure and regulatory uncertainties.
Can $ 1.5 trillion with XRP be released?
Staudinger’s proposal, SEC’s classification of XRP as a payment network, the Ministry of Justice’s legal approval for the use of XRP for the use of XRP, and the Federal Reserve’s adoption of XRP as a liquidity solution should be provided. If these conditions are fulfilled, banks may release the $ 1.5 trillion dollar fund in Nostro accounts using XRP.
However, experts have serious questions about the applicability of this proposal. The total supply of XRP and the amount of liquidity in the market may not be sufficient for the management of the recommended $ 1.5 trillion fund. In addition, a clear mechanism has not been presented to how banks will adapt to such a large -scale change. For these reasons, Staudinger’s proposal is considered a model that is difficult to implement in a concrete frame.
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Bitcoin comes up as an alternative
While the allegations to position XRP as a strategic financial asset came up, Bitcoin 
$83,100.85The global usage area and reliability structure stands out as an alternative solution. Bitcoin’s decentralized structure, wide distribution around the world and its limited supply with 21 million, positions it as a more stable reserve presence.
Some experts say that XRP is dependent on specific regulatory approvals, but Bitcoin functions as a means of storage of a value without stuck with such restrictions. Therefore, it is stated that Bitcoin may be a safer and longer option for traditional financial systems. On the other hand, it is emphasized that Bitcoin’s direct use in large financial systems may be limited due to high volatility and scalability problems.
XRP’s proposed strategic asset status is exposed to criticism due to both technical and regulatory deficiencies. Questions still remain unclear how banks will acquire XRP, the adequacy of the supply in the market and whether the regulatory approvals can be achieved. These discussions show that SEC and other regulatory institutions should carefully evaluate the process.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
