Rowen Exchange recently proposed a bold strategy for addressing the U.S. national debt (now exceeding $38 trillion) by leveraging the XRP.
In a post shared on X, Rowen Exchange suggested that by purchasing XRP at its current low price, holding it until significant appreciation, and deploying it through innovative mechanisms, the U.S. could pay off its debt within four years.
RECOMMENDATION TO PAY OFF U.S. DEBT BY IMPLEMENTING XRP
The United States can pay off its $38 trillion national debt within 4 years if it implements the framework I outline in the attached proposal.
This proposal is a revolutionary approach of using XRP as a financial tool… pic.twitter.com/1sK5oZ2W1A
— Rowen Exchange (@RowenExchange) January 5, 2025
Rowen Exchange highlighted three main strategies:
- Direct Remittance to Creditors: The government could negotiate with creditors to accept payments directly in XRP, circumventing conversion losses.
- Liquidity Pools: By establishing liquidity pools, the U.S. could gradually convert XRP into USD to avoid market disruptions.
- Complementary National Currency: XRP adoption as a secondary national currency would also drive its utility and demand, further enhancing its value.
How Much XRP Will the U.S. Need?
According to Rowen Exchange’s detailed report, acquiring 4 billion XRP at current market rates (approximately $2.40) would cost $9.6 billion. If XRP rises to $10,000, it could fully cover the $38 trillion debt.
XRP is receiving significant interest from institutions, as a well-known investment manager recently suggested an XRP buyback program for SBI Holdings. This proposal emphasizes XRP’s scalability, low transaction costs, and energy efficiency as essential factors that make it suitable for national adoption.
The report also highlighted that XRP’s finite supply will ensure scarcity as institutional demand rises. It also highlighted the ease of conversation, as a combination of liquidity pools and the national currency integration could provide a more sustainable debt repayment process.
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Potential Benefits for XRP
If the proposal is implemented, XRP could experience an exponential increase in price, adoption, and utility. The following benefits stand out:
- Increased Demand: A government-backed initiative would likely trigger global interest in XRP, driving its adoption among institutions and retail users.
- Legitimization: Recognition of XRP as a complementary national currency would elevate its status, fostering regulatory clarity and reducing market skepticism.
- Broader Use Cases: Integration into everyday transactions and national-level financial systems would highlight XRP’s scalability and efficiency, solidifying its role as a leading digital asset.
This approach has potential risks such as regulatory hurdles and XRP’s reliance on market appreciation. Nevertheless, Rowen Exchange’s proposal is an intriguing concept that reflects the growing recognition of blockchain technology’s potential to transform traditional financial systems.
The shifting regulatory landscape in the U.S. can also help beat regulatory hurdles, as President-elect Donald Trump publicly backs the crypto industry. Meanwhile, the U.S. has just sworn in its most pro-crypto Congress in history.
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.
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The post Exchange Presents Proposal To Pay off United States Debt Using XRP appeared first on Times Tabloid.
