A proposal submitted to the SEC, to integrate Ripple as a strategic financial asset, claiming it has the potential to unlock $1.5 trillion in value is gaining attention. The proposal titled ‘Comprehensive Proposal: ‘XRP as a Strategic Finacial Asset for the US’ appeared on the SEC website through its public submission portal, however, it has no affiliation with the SEC.
On March 12, a proposal named XRP as a strategic financial asset for the US was found on the SEC website via its public submission portal, written by Maximilian Staudinger, an advisor in a German financial company, according to reports. In the five-page document, he explains the economic advantages XRP could provide to the US financial system, facilitating to improvement its economy.
According to the proposal, by replacing Nostro accounts (a foreign currency account held by a domestic bank to facilitate international transactions) XRP could unlock $1.5 trillion within the US financial system. As per data, around $27 trillion is locked in Nostro accounts globally, and the US contributes $5 trillion.
The proposal suggests replacing the SWIFT system with XRP, highlighting XRP’s high-speed and low-cost transactions, which could potentially reduce the expenses by around 30%, emptying around $1.5 trillion of the total $5 trillion held in the US Nostro accounts. The shift could pave the way for saving $7.5 billion yearly.
Staudinger’s proposal suggests using XRP for government payments, like Internal Revenue Service (IRS) refunds, poising it to unlock $500 billion over the next ten years. Following the initial testing for government payments, XRP can be adopted by banks and financial institutions.
Though the integration could potentially face challenges, with an executive order complete integration could be achieved within a year, claims the proposal. To attain this, a major policy reversal, classifying XRP as a financial asset rather than a security is essential.
He also recommends using the freed-up space to be allocated for strategic Bitcoin reserve, enhancing the digital asset integration to the financial system.
The proposal aligns with XRPs goals, offering a low-cost high-speed transaction for a streamlined banking system. However, some suggestions seem unrealistic and senseless.
XRP Price Surge
The XRP price jumped above $2.30, regaining its lost momentum. XRP, which is used to facilitate transactions on Ripple Lab’s digital payment platform has risen more than 5%, now trading at $2.33.
This popular altcoin has gained 9% since March, mainly due to its inclusion in Trump’s strategic reserve. However, other coins included in the reserve like Bitcoin and Solana dropped its price.
The conclusion of the ongoing case between Ripple Labs and SEC, which is expected soon, will increase the XRP price further. Also, Ripple’s entrance into the stablecoin market with RLUSD also contributes to its long-term growth, igniting its price.
Though Staudinger’s proposal lacks implementation methods for the figures he has presented, it highlights XRP’s capability and potential to become a key player in the crypto industry. The price surge and inclusion in Bitcoin reserve signal a fruitful future for this prevalent altcoin.
