The idea that the US government holds XRP as part of the National Reserve may sound distant, but it is actually a conversation that is gaining momentum in parts of the financial and crypto world.
The concept gained traction earlier this year, following a private meeting involving Ripple executives, including CEO Brad Garlinghouse. Speculation surged back then, with some industry watchers presuming that XRP could be added to the Federal Reserve strategy. The probability has since been soaked at about 22%, but the conversation remains active.
Conorm McLaughlin, wealth manager and digital assets commentator, recently shared his perspective on ideas in the Paul Baron network. He believes that XRP reserves across the country could be beneficial, but he warned that the impact will depend on the reasons behind it.
“If it’s just an investment allocation, that’s one thing,” McLaughlin said. “But the high-level partnership between Ripple and the US government is driven by actual liquidity use cases, and that’s where it really makes sense.”
He added that while Bitcoin has already begun to find its position in the institution’s portfolio, the mixed reaction is being met as it expands federal interest in other crypto assets like XRP.
“It looked like there was momentum,” he added. “However, internal disagreements may have halted serious efforts. It is unclear whether the government simply suspends it to avoid controversy or whether the idea was completely abandoned.”
McLaughlin said long-term adoption trends could ultimately force a rethink, regardless of current government hesitation.
“As time goes by, these technologies prove themselves. If the US missed the boat now, we could see repeated things that happened with Bitcoin.
Some have creative ideas on how governments accumulate XRP. One theory involves the US Treasury redirecting fines or fines related to Ripple’s continued legal proceedings that continue to hold XRP for its strategic reserves. A plausible, but more persuasive future, according to McLaughlin, is that XRP is used in the infrastructure underlying the financial system, not only is it passively retained.
“There’s real excitement when Tier-One Banks begins using XRP for real-time payments and financial plumbing,” he said. “That’s what really moves the needle for the ecosystem.”
