Crypto author Panos Mekras has engaged an AI tool on the speculative theory of the U.S. Federal Reserve engaging in an XRP buyback.
Mekras prompted the AI tool- Corcel to assume the role of a seasoned industry veteran with extensive experience in banking, finance, and the XRP Ledger.
AI Calls Buyback a Ruse
Corcel dismisses the notion of a Federal Reserve buyback of XRP at exceptionally high prices, citing practical and logical inconsistencies. The Federal Reserve’s core functions include monetary policy, bank supervision, and financial stability, making a buy-back incongruent with its role.
Moreover, Corcel warns of market manipulation risk. Buying XRP at inflated value conflicts with the Federal Reserve’s stability mandate, risking credibility.
Highlighting XRP’s decentralized nature on a global network of nodes and validators, Corcel asserts that the Federal Reserve would lack control over the XRPL, making it an unsuitable asset for investment or buyback.
In terms of economic feasibility, Corcel emphasizes the impracticality of repurchasing a digital asset at an elevated price, considering its total supply of 100 billion tokens. Such a scenario, it argues, would result in an economically unviable and disproportionate market valuation relative to the global economy.
No Precedent for FED XRP Buyback
Furthermore, the AI tool cited that no existing legal precedent or regulatory mechanism permits the buyback of digital assets.
Ultimately, Corcel mentioned that global central banks, including the U.S. FED, are investigating the development of central bank digital currencies (CBDCs).
Currently, XRP trades at $ per token.