Tensions between the U.S. and China, extending beyond tariffs, present significant hurdles for global trade. These challenges lie in outdated financial systems, currency mismatches, and cross-border settlement delays that impede commerce. Versan Aljarrah, founder of Black Swan Capitalist, suggests XRP could play a crucial role in easing these tensions. His hypothesis hinges on the potential of XRP to facilitate faster and cheaper settlements between the U.S. dollar and the Chinese yuan.
Aljarrah’s core argument revolves around XRP’s unique position as a neutral bridge asset that eliminates reliance on either currency during cross-border transactions. By bypassing traditional intermediaries, XRP can significantly reduce settlement times and associated costs. Recent analyses confirm XRP-based infrastructure offers instant settlements instead of the days-long delays of legacy systems, leading to cost reductions of up to 90%.
Real-world adoption is also bolstering this thesis: Chinese fintech Linklogis has partnered with the XRPL to shift its global trade finance platform onto blockchain rails. This demonstrates growing institutional confidence in XRP’s settlement capabilities. Moreover, a bloc of major economies (BRICS) cited XRPL potential for automated escrow and blockchain-driven settlement in a recent trade report.
However, this solution is not without challenges. Navigating complex regulatory frameworks in the U.S. and China remains crucial. XRP and the XRPL must overcome political hurdles related to monetary sovereignty, digital assets, and financial stability. While a technological solution can improve existing infrastructure, it cannot directly address deeper political factors driving the trade war.
The search for more efficient global trade continues amid persistent supply-chain fragilities and currency-settlement concerns. If XRP gains traction as a settlement bridge in major corridors, two significant benefits can emerge: reduced trade time and costs and minimized dominance of any one national currency rail. Although this alone may not fully solve the U.S.-China trade war, it could significantly ease its friction points.
Aljarrah’s thesis proposes a novel approach to resolving geopolitical tension through technology. Whether market forces, institutional support, or regulatory action will propel this vision forward remains to be seen but highlights a potential shift in how we view cryptocurrency, trade infrastructure and geopolitics.