During a Twitter discussion organized by XRPStewie community member David Schwartz was asked if digital assets could be used as full-fledged reserve currencies, and if they could coexist with the U.S. dollar. Schwartz believes that this scenario is indeed possible.
Ripple’s CTO explained that the US dollar now dominates as the reserve currency for most countries. However, many nations 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 could materialize if countries recognize the limitations of dependence on the U.S. dollar, Schwartz is convinced.
He stressed that smaller financial institutions often prefer software solutions that have not been developed by large banks. This is due to concerns that big players might impose their preferences, Schwartz explained.
Not everyone shares his view, however. For example, Cardano founder Charles Hoskinson has previously said that an international currency should be both a medium of exchange, settlement and savings, but even bitcoin lacks those three characteristics.