After more than eight years at the helm of America\u2019s central bank, Jerome Powell\u2019s term ended on Friday, and he was replaced by the seventeenth Federal Reserve Chair, Kevin Warsh.<\/p>\n
Given US President Trump\u2019s growing public issues with Powell for refusing to lower the key interest rates, the POTUS\u2019s new pick is expected to have a more open-minded approach to the institution\u2019s monetary policy. He has also expressed support for BTC in the past, which has some altcoin fans questioning whether it extends to other crypto assets.<\/p>\n
As such, we decided to ask one of the most popular AI models whether XRP, the third-largest non-stablecoin altcoin, could benefit as well.<\/p>\n
Gemini said that BTC benefits from being viewed as \u201cdigital gold,\u201d but the landscape around utility-focused alts such as XRP under a Warsh-led Federal Reserve is \u201cfar more nuanced.\u201d It added that the new Fed head is likely to bring a \u201cmix of strict macroeconomic discipline and an open-minded approach to financial innovation that could uniquely impact the Ripple ecosystem.\u201d<\/p>\n
His pre-office disclosures revealed investments across the DeFi space, Layer-1 blockchains, and digital asset exchanges, which shows an appetite for cryptocurrency utility beyond just store-of-value propositions.<\/p>\n
More importantly for XRP, Warsh has been vocal about the \u201cmodernization of money.\u201d He has argued in the past that central banks must \u201cproactively engage with digital currencies and has pushed for the US to consider a Central Bank Digital Currency to remain competitive, especially against initiatives like China\u2019s digital yuan.\u201d<\/p>\n
Ripple has positioned the XRP Ledger to act as a neutral bridge asset for various CBDCs, which could benefit the underlying asset.<\/p>\n
\u201cA Fed Chair who is actively exploring the integration of digital, blockchain-based money into the traditional financial system provides a massive structural tailwind for Ripple\u2019s core business model,\u201d concluded Gemini for its bull case.<\/p>\n
However, it\u2019s not all promising and bullish predictions. The AI warned that Warsh has repeatedly noted that the explosion of alternative digital assets is largely a byproduct of loose monetary policy. XRP, similar to most altcoins, relies heavily on broad market liquidity.<\/p>\n
Gemini believes capital is likely to become more expensive in the US as Warsh would want to reduce the Fed\u2019s footprint in financial markets. In such tight liquidity environments, investors typically \u201cflee from altcoins toward safer assets or bitcoin,\u201d added Gemini.<\/p>\n
If the new Fed Chair executes his vision of higher real rates and a smaller Fed balance sheet, XRP could \u201cface severe downward price pressure as speculative capital dries up.\u201d<\/p>\n
The post Will XRP Skyrocket With Warsh Heading the Fed? Gemini Outlines Ripple\u2019s Path Forward<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" After more than eight years at the helm of America\u2019s central bank, Jerome Powell\u2019s term ended on Friday, and he was replaced by the seventeenth Federal Reserve Chair, Kevin Warsh. Given US President Trump\u2019s growing public issues with Powell for refusing to lower the key interest rates, the POTUS\u2019s new pick is expected to have […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-169989","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/169989"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=169989"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/169989\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=169989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=169989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=169989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}