David Schwartz the Chief Technical Officer (CTO) at the blockchain payment tech company Ripple has said in a tweet that the world is not going to have just one fiat currency any time soon. He is of the view that no single asset is going to rule all of the other assets.
Recently, David Schwartz appeared on Twitter on October 19, 2020, and presented his opinion on how he believes that the native fiat currency of the United States US Dollar (USD) is witnessing a decrease in its role as being the settlement currency of the world. Where USD’s role is shrinking, several other cryptocurrencies as well as fiat currencies are ready to compete for this role. So there are more than one assets that aim at filling this room.
While discussing this, Schwartz said that he does not believe in the fact that there will be one fiat currency in the world any time soon. As he asserted in a tweet:
“I don’t think there’s going to be one world fiat any time soon, so even with stablecoins there will be a lot of them. To make liquidity between CBDCs, other stablecoins, and new tokenized asset classes (securities, DeFi) there’s room for a neutral, jurisdictionless asset.”
I don't think there's going to be one world fiat any time soon, so even with stablecoins there will be a lot of them. To make liquidity between CBDCs, other stablecoins, and new tokenized asset classes (securities, DeFi) there's room for a neutral, jurisdictionless asset.
— David Schwartz (@JoelKatz) October 19, 2020
Cryptocurrencies such as XRP may act as a bridge for CBDCs or stablecoins
By “a neutral, jurisdictionless asset”, he meant that there is a need for a digital asset that may act as a bridge for stablecoins as well as for Central Bank Digital Currencies (CBDCs). That is where he said the famous digital currencies such as Ripple’s native digital currency XRP and the Stellar blockchain’s native crypto asset XLM will play their role.
Moreover, he also acknowledged that all of the payments of the world cannot be handled only by the XRP Ledger saying that people always look for different solutions when their problems are different.