XRP Tipped as America’s Secret Weapon in Financial Cold War Against China

Forget gold reserves or bond markets—crypto analysts now flag Ripple’s XRP as the US’s unlikely ace against Beijing’s digital yuan ambitions.

Why it matters: While politicians bicker over tariffs, blockchain networks quietly reshape global power structures. XRP’s institutional adoption and Fed-friendly compliance stance give Wall Street a rare tech edge.

The twist: This comes as China’s CBDC pushes into Africa and Southeast Asia. XRP’s existing banking partnerships could let US firms bypass SWIFT—if regulators don’t strangle it first.

Bonus jab: Nothing unites Washington like finding an asset class to simultaneously overhype and overregulate.

• Egrag Crypto pointed out that the U.S. holds 198,109 BTC and China owns around 190,000 BTC.
• Egrag claimed the U.S. could have an upper hand through Ripple’s escrowed XRP holdings.
• The cryptocurrency is currently priced at $2.17, slipping by 2.97% in the last twenty-four hours.

As the economic rivalry between the United States and China heats up, some in the crypto space argue that XRP could deliver a strategic advantage to America. Egrag, a prominent figure in the XRP community, recently shared his views on social media, noting that while both superpowers are heavily invested in Bitcoin, XRP could shift balance in favor of the United States.

To support his view, Egrag shared an illustrative comparison showing the U.S. government controlling 198,109 Bitcoin, slightly more than China’s approximate 190,000 Bitcoin holdings. Despite the narrow margin, the argument extends beyond Bitcoin’s influence.

He identified Ripple’s escrow, containing 36 billion XRP, as a significant asset capable of strengthening America’s position within the global crypto landscape. According to Egrag, “China does not own XRP,” whereas the United States could potentially leverage Ripple’s massive escrowed in its favor. 

Critical Voices Challenge XRP-Centric Narratives

Yet, not every voice in the crypto community agrees with Egrag’s enthusiastic assessment. Vincent Van Code, another influential figure within the community, offered a different point of view. In response to Egrag’s claims, Van Code argued that the debate should not boil down to a simple XRP versus Bitcoin comparison.

He reminded everyone that the economies of both the United States and China operate on scales of tens of trillions of dollars. In that context, $20 billion in Bitcoin holdings is a relatively minor figure, unlikely to shift the balance of global economic power by itself.

Van Code further emphasized that while cryptocurrency is undoubtedly a revolutionary technology, its real power as a strategic national asset depends heavily on its integration into the broader economic system, rather than the mere possession of digital coins.

Interestingly, Trump had once hinted at the possibility of incorporating alternative cryptocurrencies into a national reserve. His final executive order suggested adding XRP to an altcoin stockpile, with Bitcoin as the primary reserve asset. However, in contrast to Egrag’s claim, the U.S. government currently does not hold XRP.

Some commentators propose that Ripple’s upcoming $50 million fine could potentially be settled using XRP instead of cash, offering a way for the U.S. government to indirectly acquire a significant stake in the token.

XRP Price Action and Market Sentiment

As of now, XRP is trading at $2.17, marking a 2.97% decline over the past 24 hours. The altcoin has also dropped over 5% on the monthly chart, underscoring sustained bearish pressure across the market.

Meanwhile, data from Coincodex shows that market sentiment remains neutral, reflecting persistent uncertainty among investors regarding its future trajectory. Only 43% of its last 30 trading sessions have recorded profitability, further emphasizing cautious market behavior.

Nevertheless, Coincodex analysts anticipate short-term resilience, forecasting a potential rise to $2.31 within five days. Despite short-term optimism, the long-term outlook remains pessimistic, with projections pointing to a decline toward $1.97 in one month and $1.65 over three months.

Read More | solana price prediction 2025: Can SOL Hit $500 or Even $1,000 This Cycle?