Crypto investor Mr. Man recently proposed an intriguing analysis regarding the potential strategic use of XRP within a reserve framework similar to the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) basket. His tweet explores the allocation of XRP based on the weighted distribution of currencies in the SDR basket, aiming to assess its potential to address national debts, particularly in the United States. Strategic XRP Reserve breakdown in value: Let’s presume there’s an XRP strategic reserve for the U.S., and presuming the same could happen to the other currencies within the IMF’s SDR architecture. Ripple has escrowed 37.7B XRP. We’ll presume the XRP is escrowed for the… https://t.co/qbpZA8MxSK pic.twitter.com/mEis0AIvA8 — Mr. Man (@MrManXRP) January 26, 2025 The Basis of the Proposal The SDR basket comprises five major currencies—USD, EUR, CNY, JPY, and GBP—weighted according to their global financial influence. The weights, as of August 2022, are: USD: 43.38%, EUR: 29.31%, CNY: 12.28%, JPY: 7.59% and GBP: 7.44%. Mr. Man hypothesizes that the XRP held in Ripple’s escrow, totaling 37.7 billion tokens, could be a strategic reserve allocated in proportions reflective of the SDR weights. Additionally, he presumes the IMF would require an equivalent share, implying equal distribution among the five currencies and the IMF itself. Allocation of XRP by Currency Based on the SDR weights and the total escrowed XRP, the proposed distribution is as follows: USD: 2,725,710,000 XRP, EUR: 1,841,645,000 XRP, CNY: 771,593,333 XRP, JPY: 476,905,000 XRP, GBP: 467,480,000 XRP and the IMF: 6,283,333,333 XRP. This allocation suggests the IMF would hold the largest portion, as its share matches the combined weight of all participating currencies. XRP’s Role in Addressing Debt Mr. Man’s analysis focuses on shifts to using XRP to clear the United States’ national debt , currently at $37 trillion. Using the 2,725,710,000 XRP allocated to USD, he calculates the price XRP would need to reach for this debt to be fully cleared. The result is a value of approximately $13,574.44 per XRP. This calculation assumes the entirety of the allocated XRP would be used exclusively for this purpose. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Factors to Consider If XRP were to achieve such a valuation, it could theoretically serve as a transformative asset in the global financial system. However, several considerations arise: Utility and Liquidity: For XRP to function as a reserve asset at such valuations, substantial global adoption, liquidity, and utility would be required. RippleNet and XRP’s role in cross-border payments needs to be universally recognized and integrated. Economic Feasibility: The transition to a reserve system anchored by XRP would necessitate profound changes in monetary policy, international trade, and financial regulation. IMF’s Involvement: The inclusion of XRP as an asset in the SDR basket would require formal adoption by the IMF and acceptance by its member states. This would be a complex, multilateral process. Mr. Man’s proposal presents an ambitious vision for XRP’s potential within a global reserve framework. While the theoretical calculations demonstrate how XRP could address large-scale debt challenges, achieving this would require unprecedented cooperation and reform across financial institutions, central banks, and governments. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Strategic XRP Reserve Breakdown In Value appeared first on Times Tabloid .
