Ripple CTO David Schwartz has spoken out in a recent tweet about the XRP buyback proposal that first surfaced in 2021 and is now resurfacing with a second iteration. The controversial proposal is currently being heatedly discussed again on Twitter after Valhil Capital CEO Jimmy Vallee brought up the idea again.
The theory is based on the belief that XRP will become the world’s reserve currency when government debt skyrockets worldwide and all banks switch to ISO 20022 and use XRP to conduct cross-border monetary transactions. This would mean that governments around the world would have to buy large amounts of XRP.
According to Vallee, this would create the need for a buyback, as XRP purchases by governments could not take place in secondary markets. In addition, the Valhil Capital executive also points to the need for a Bretton Woods-like case in this context, in which XRP the IMF deems the token an eSDR (Special Drawing Right)…
