Ripple CTO Talks to Economics Expert: Crypto for Cross-Border Payments Likely to Have Legs After Lockdown

Ripple CTO talks to an economics professor from Berkeley, Barry Eichengreen, on the Ripple podcast and discusses QE, stablecoins and crypto used for cross-border payments

article image

Cover image via

Ripple CTO David Schwartz invited Barry Eichengreen, professor of economics and political science at the University of California, Berkeley, to the Ripple podcast called “Block Stars.”

The conversation was about the post-lockdown state of the economy, safe havens against the expected hyperinflation and cryptocurrencies—in particular, USD-backed stablecoins and crypto used for transnational payments.

An unprecedented lockdown

Barry Eichengreen, also an economic historian, admitted that the current situation with the pandemic that began in China and the government-forced lockdown that followed hardly has any analogues in the past. Never before had the U.S. economy been shut down; Eichengreen was unable to come up with any historical analogies.

Approving the QE while admitting that issues will follow

Professor Eichengreen approved the relief strategy that governments around the world chose to follow in order to support businesses and the well-being of average citizens.

However, he admitted that despite choosing the best tack under the circumstances, cash printing will have certain issues in the future.

I think [governments have] to do what it takes to keep financial markets functioning…by buying everything that moves. There will be a bill to pay down the road.

Drawing similarities between gold and Bitcoin

Many investors are now fleeing to safe havens, such as gold and silver, which they believe will preserve value if the USD loses its purchasing power or exhibits a substantial decrease in value.

Eichengreen stated that gold and Bitcoin are somewhat similar in this case, since both are valuable because of community trust in those assets. Gold does not have any intrinsic value, he said. Neither gold nor Bitcoin have any industrial use, the professor added.

He also emphasized the fact that very often Bitcoin is impossible to enter without US dollars.

Stablecoins and crypto for cross-border payments

Eichengreen pointed out that many investors are now shifting into stablecoins (many of them are pegged to the USD), hoping to hedge inflation risks through those. However, he believes that, should the US dollar lose its value, the stablecoins backed by it will as well.

Yet he believes that digital assets used for cross-border payments are likely to prove their value in the future and thus have a chance to prosper.

Join Geezgo for free. Use Geezgo’s end-to-end encrypted Chat with your Closenets (friends, relatives, colleague etc) in personalized ways.>>
Did you enjoy this post? Please comment below:

  • Bitcoin
  • Ethereum
  • Litecoin
  • Zcash
Scan to Donate Bitcoin to bc1qcc3xajxvdqjnx2f7j7sfcfun7jagr0nh94fa2e

Donate Bitcoin to this address

Scan the QR code or copy the address below into your wallet to send some Bitcoin

Scan to Donate Ethereum to 0x704671D7591d05Dd0790E86Aee964558E9347b07

Donate Ethereum to this address

Scan the QR code or copy the address below into your wallet to send some Ethereum

Scan to Donate Litecoin to ltc1q7tj9ydra9ylkelu42vypp6cu2v0msf5lc2p5mq

Donate Litecoin to this address

Scan the QR code or copy the address below into your wallet to send some Litecoin

Scan to Donate Zcash to t1LiPaQ7gsSL23FbjXswpSoguP6yAE1xj5B

Donate Zcash to this address

Scan the QR code or copy the address below into your wallet to send some Zcash


You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *