The idea that Donald Trump might choose XRP instead of Bitcoin to pay off the U.S. national debt in trillions of dollars is actively discussed in the cryptocurrency community, especially in posts on the X platform. However, despite speculation, there are no official confirmations or specific plans indicating that this is a real policy or initiative. Let's examine the issue from different angles.
Context of speculation
Posts on X:
Some X users claim that Trump could use XRP to pay off the U.S. debt, referring to his statements about the possible use of cryptocurrencies to address the national debt (around $36.4 trillion by 2025). For example, posts mention that XRP could be part of a "strategic reserve of digital assets" and that its price would need to rise to $965.5 to cover the debt.
Other posts suggest that Trump could obtain XRP "for free" by using assets held in Ripple's escrow, instead of purchasing bitcoins, which allegedly would not increase the debt.
There are also mentions of Trump's meetings with Ripple representatives and a 13% rise in XRP after the inauguration, which fuels speculation.
Trump's statements:
Posts on X cite an alleged statement by Trump that he would like to "write on a piece of paper '35 trillion dollars in cryptocurrency – debt equals zero.'" However, there are no confirmed official sources where Trump directly mentioned XRP in this context.
Trump has previously expressed support for cryptocurrencies, including the idea of a strategic reserve of bitcoins, but there are no specific mentions of XRP in official speeches or documents.
Practical possibility
Debt repayment mechanism:
The U.S. national debt consists of obligations denominated in U.S. dollars, and paying off debt with cryptocurrency would require a complex mechanism. For example, the government might accept cryptocurrency as payment or sell it for dollars to cover the debt. However, this would require:
Widespread adoption of XRP as a legitimate means of payment or asset, which has not yet been realized.
Significant growth of XRP's market capitalization. As of October 2023, XRP's market capitalization was around $27 billion, which is only a small fraction of the $36.4 trillion debt. To cover the debt, the price of XRP would need to increase thousands of times, which is unrealistic without hyperinflation or other economic calamities.
Furthermore, using XRP to pay off debt would require the consent of creditors (e.g., holders of U.S. treasury bonds), which is unlikely without a legislative framework.
XRP versus Bitcoin:
Bitcoin is more often mentioned in the context of a strategic reserve due to its decentralized nature, wide recognition, and status as "digital gold." XRP, on the other hand, is associated with Ripple and is primarily used for cross-border payments, making it a less likely candidate for a reserve asset.
Claims about the "free" use of XRP from Ripple's escrow (around 40 billion tokens as of October 2023) ignore legal and market constraints. Ripple's escrow is intended for controlled token release, and their "confiscation" would require complex legal actions, which could undermine trust in the cryptocurrency market.
Economic and political barriers:
Using cryptocurrency to pay off debt would require the approval of the U.S. Congress, the Federal Reserve, and other bodies. This is a complex process, considering the disagreements on economic policy.
Widespread adoption of XRP could destabilize financial markets, especially if it caused volatility in the dollar or trust in treasury bonds.
Alternative view
Speculation about XRP may be part of market hype fueled by cryptocurrency supporters ("XRPArmy"), who see Trump's statements as an opportunity for XRP price growth.
Ripple and XRP indeed have potential in the financial system, especially for cross-border transfers, but their role in paying off the U.S. national debt remains hypothetical and unconfirmed by facts.
A more likely scenario is the use of cryptocurrencies (including Bitcoin or XRP) as part of the diversification of U.S. reserves, but not as a direct tool for debt repayment.
