The claim made by cryptocurrency pundit Jack Straw that XRP would eventually replace the US dollar in Japan has sparked discussion. (Photo : by THIBAUT DURAND/Hans Lucas/AFP via Getty Images)
The claim made by cryptocurrency pundit Jack Straw that XRP would eventually replace the US dollar in Japan has sparked discussion. This audacious claim is made as Ripple and HashKey DX work to advance the introduction of XRP Ledger-based products to the Japanese market.
With the support of the massive Japanese financial institution SBI Group, the alliance seeks to provide supply chain financing solutions enabled by the XRPL blockchain. Should Jack Straw's forecast come true, this action may drastically alter Japan's financial system and perhaps completely transform international commerce.
The Strategic Entry of Ripple Into the Japanese Market
With its collaboration with HashKey DX, Ripple is taking a calculated risk by entering Japan's rapidly expanding supply chain financing business. According to a recent study estimate, by 2030, blockchain's share of supply chain financing is expected to increase from $360 million to $13.4 billion.
Ripple wants to duplicate the success of HashKey DX's supply chain financing product in Japan. This product has previously proven effective in China, where it has facilitated over $7 billion in trade volume. This program is in line with Ripple's overarching objective of encouraging XRP Ledger usage and enhancing its standing within the international financial ecosystem.
Jack Straw says there are a few important criteria that will determine if XRP replaces the US dollar in Japan. He uses the September launch of an XRP-based cross-border payment service by SBI Group as evidence that Japan has already started implementing XRPL-based solutions.
Straw claims that this action indicates Japan's readiness to look for alternatives to established financial institutions. He goes on to say that XRP may be used as a liquidity source in place of dollars in Japan's currency exchange operations, which might lessen Japan's need on the SWIFT network.
The exchange rate between the US dollar and XRP in Japan may have a big impact on the economy and international commercial relations of the nation.
According to Jack Straw, this change would hasten Japan's de-dollarization process and cause the nation to sell off its dollar holdings in favor of gold and other assets. Furthermore, the introduction of an XRP stablecoin would make digital money transfers easier and lessen Japan's reliance on conventional financial institutions.
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