Renowned crypto author Panos Mekras asked an artificial intelligence system about its thoughts on the speculative theory of the U.S. Federal Reserve conducting a buyback of XRP.
The AI tool was Corcel, which operates through the decentralized AI network Bittensor. Mekras prompted Corcel to position as an industry veteran with decades of expertise in banking, finance, and the XRP Ledger.
What do you think of the $XRP buyback theory with the Fed?
Answer by https://t.co/fpjZFZATlA – powered by the decentralized AI network Bittensor.
SYSTEM PROMPT
You are a banking, finance, and XRP Ledger expert with decades of experience who knows every detail around banks,… pic.twitter.com/xKbsDzCgPa
— Panos ?{X} (@panosmek) December 10, 2023
AI Calls XRP FED Buyback a Ruse
According to Corcel, the theory suggesting a Federal Reserve buyback of XRP at an exorbitantly high price lacks practical and logical grounding. The AI tool outlined several reasons why the theory holds no water.
Firstly, it pointed out that the mandate of the Federal Reserve involves influencing monetary policy, supervising banks, and maintaining the financial system’s stability. As a result, Corcel argued that engaging in the buyback of a cryptocurrency like XRP does not align with FED’s core functions.
Furthermore, Corcel highlighted the potential for market manipulation if the FED were to buy back XRP at an artificially high value. It noted this action would undermine the credibility of the Federal Reserve and conflict with its mandate to ensure a stable financial system.
Moreover, the AI tool emphasized the decentralized nature of XRP on a global network of nodes and validators. It remarked:
“The FED would have no control over the XRPL, making it an unsuitable asset for the FED to invest in or buyback.”
Meanwhile, Corcel raised a point on economic feasibility. It highlighted that with the total supply of XRP at 100 billion tokens, repurchasing XRP at an elevated price would lead to an astronomical market valuation. It claimed such a scenario would render it economically impractical and disproportionate to the global economy’s scale.
No Precedent for FED XRP Buyback
Furthermore, the AI tool cited that no existing legal precedent or regulatory mechanism permits the FED to participate in repurchasing a digital asset.
Ultimately, Corcel mentioned that global central banks, including the U.S. FED, are investigating the development of central bank digital currencies (CBDCs).
“These would be sovereign digital currencies issued and regulated by the central banks themselves, rather than adopting an existing decentralized cryptocurrency,” Corcel submitted.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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