A viewer asked: What do you think about XRP becoming the new ESDR? This recording is Jake Claver's answer, in full and unedited.
Covered in this recordingliquidity
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What this recording covers
Claver analyzes whether XRP will serve as the electronic Special Drawing Right, known as the eSDR. He reviews the historical background of the Special Drawing Right, recalling John Maynard Keynes's Bancor proposal at Bretton Woods for a reserve asset managed by the International Monetary Fund. Claver explains that the actual SDR represents a basket of sovereign fiat currencies weighted by gross domestic product. Because XRP is not backed by sovereign currencies, Claver states that the token will not function as the eSDR itself. Instead, network stability and utility depend on on-chain transaction volume and token liquidity. Claver describes XRP acting as an underlying settlement rail and liquidity mechanism to facilitate eSDR loans and institutional transfers. Citing a 2014 International Monetary Fund white paper on exchange rate pegs, Claver outlines how the digital asset could function as an international settlement benchmark for global commercial transactions measured in drops.
Where this fits
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