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Could Ripple(XRP) Replace Government-Issued Currency? 

ripple xrp ripple

We hear talks about digital currencies lately being issued by the government and there is much speculation regarding what coin will be picked. Many people believe Ripple could become a government issued digital currency so we wanted to explore that idea and see how likely it is that Ripple could replace the dollar, and other government issued currencies.

The flaws in the world’s financial system were exposed in the last financial crisis (2008). This led to the birth of a Cryptocurrencies run on the Blockchain. Another financial crisis is underway and cash is failing us again. 

Here’s why: 

The Federal Reserve agreed to pump 2 Trillion Dollars into the US economy to cushion the down toil caused by a number of factors one of which is the Novel Covid-19 pandemic. However, one question we all should be asking is: 

Where does this Cash come from? 

money vs crypto

A Private company called; The Federal Reserve. They are responsible for every dollar note you spend anywhere in the world. But, did you know the money is given in the form of Debt? This has not turned out very positive as the GDP to Debt profile of the US alone well over 105% and 322% globally. 

Cash has failed us once again and you are privileged to be at the forefront of it. We shall be exploring the possibility of a cryptocurrency called Ripple(XRP) replacing government-issued currencies. 

Can this really happen?

Maybe, If it does, how does this affect the society we live today? Should you be worried? What measures should you take?  These are questions we are hoping to answer before the end of this Article. 

We need to go back to the Genesis of things so we get a picture of how it all started.

The Gold-Backed Currency

gold backed currency

Gold has always been a valuable metal so valuable that nations accepted it during trade as a means of exchange for goods and/or services. Paper money was introduced not to remove the relevance of gold but to make it more convenient to transact. 

Within 1692 and 1812, you could spend paper money because the value was pegged to Gold. In other words, if you can earn a $100 note, you exchange it for that same value of gold. Likewise, if you had some $100 worth of gold you are allowed to exchange it for paper money. 

Things changed quickly…

Following World War One (WWI) countries were drowning in debt coupled with political instability, the weakness in the gold-backed currency was revealed as it was unable to hold during terrible times. The world needed something not just flexible but also scalable to build the global economy.

The US Dollar and British Pound became the world standard currencies meaning smaller countries held reserves of these currencies instead of actual gold or silver. The dollar was convertible to the dollar at a fixed rate of $35/ounce. 


The relationship between the US dollar and gold grew stronger until 1971 when then-President Nixon abolished the gold standard. This was in place to curb inflation and solve the budding unemployment challenge. But did it? The Federal Reserve was responsible for printing and circulation of the US dollar. 

2008 Financial Crisis…

If you did not already know, it was a result of people being able to take out loans to buy homes at more than 100% value which was exaggerated. The Federal Reserve kept pumping Dollars to cushion the effect in the form of debt which is a temporary fix.

The same thing is happening right now but the unfortunate aspect is we might not be able to recover from this and stand a chance of losing confidence in the Dollar as the Reserve currency.

A digital Currency or Cryptocurrency to the rescue. 

The US government is unable to pay off this rising debt even if all the citizens are taxed for the next decade. The best approach will be to have a gold-backed digital currency or cryptocurrency. 

The true story…

There are a number of reasons this should be considered as a solution for the looming crisis chief of which is because the world economy and trade are not as it was 50 years ago. There is a need for a currency that cannot be manipulated; printed from thin air.  

Why Ripple (XRP)? 

Ripple (XRP) has been around for barely a decade (Since 2012) but its underlying technology has influenced how transactions are done between banks. Replacing the archaic system of Continental, regional and inter-bank money transfer. How? 

Could Ripple XRP Replace Government Issued Currency

It used to take days or weeks to initiate an international bank transfer, even at this pace you still need to deal with ridiculous charges. Not anymore, as you can now send money across the world and have it delivered in seconds for free. 

In case you did not know…

This technology outpaces Bitcoin and Ethereum while maintaining scalability, security, and decentralization.

How Will Ripple(XRP) Solve The Debt Crisis?

financial crisis stock exchange

As mentioned, the Federal Reserve is a private company run and managed by bankers. Over the years, these bankers have done a decent job keeping the nation afloat.  But this has come at a cost, we are the most indebted nation on earth. 

Being honest with ourselves…

We cannot pay that debt (22 Trillion+) and still maintain our status as The World Power. The best bet will be to switch to a reliable alternative. This time the power will be in the hands of the people (Decentralized) with the price based on the forces Demand and supply. 

There is a fixed 100 Billion XRP volume that can ever be in circulation. We do not need to print more money with XRP as the value will just keep growing. For instance: 

at 1 XRP = $1 the market cap is $100 Billion it is projected that XRP could grow to $334 over the next few years. 

Read what chief technology officer at Ripple says regarding liquidity and adoption. 

quora xrp Could Ripple XRP Replace Government Issued Currency? 1

About stability…

Ripple (XRP) is relatively more stable than Bitcoin and Ethereum. Although not as stable as Tether (USDT) which is directly pegged to the US dollar. As global adoption increases, we should expect a more stable currency.

xrapid xrp

Impact On The Society

The advent of visa, MasterCard and Cryptocurrencies (BTC, ETH) will make the transition seamless. It will be safe to say, we all have been waiting for this era. Like every technological advancement, there will be some resistance to change but eventually, it will pass. 


  • Second most Valuable Crypto: Ripple (XRP) has finite 100 billion coins but it is the second most valuable crypto behind bitcoin. 
  • Zero Inflation: All the tokens exist and this will solve the inflation challenge. 
  • Established Structure: It has a proper structure with the right talents managing the coin.
  • Stability and Price: Ripple comes with some level of stability compared to BTC and ETH. \
  • Fast international transactions.



  • Ownership: Although it is decentralized a bulk of the ownership is tied to ripple labs. 
  • Future integrated technologies that take more control away (as seen in the movies)

Final thought….

Necessity is the mother of invention, the current financial system has failed. An upgrade is necessary to address this looming crisis and save our posterity. Governments need to act and act fast. 

There is a race right now to eliminate debt and restructure and Ripple could be the perfect vehicle to get us there. 

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CryptoWhat was created in 2015 and has become one of the most trusted and well-respected sources of information on all things crypto. The blog's authors are dedicated to providing clear, concise, and jargon-free explanations of this complex technology, so that everyone can understand it.