The U.S. government is exploring an unconventional yet strategic plan to acquire Bitcoin without burdening taxpayers. A new proposal suggests transitioning a significant portion of government transactions from the traditional SWIFT banking system to the XRP Ledger, potentially unlocking billions in savings to be redirected into Bitcoin purchases.
Replacing SWIFT with Blockchain
Currently, the SWIFT network powers most cross-border banking transactions, but it is often criticized for being slow, expensive, and centralized. The proposal seeks to migrate 30% of the $5 trillion held in U.S. government Nostro accounts to the XRP Ledger, utilizing Ripple’s On-Demand Liquidity (ODL) system for global payments.
By making this switch, analysts estimate the government could save at least $7.5 billion annually in transaction costs. Instead of absorbing these savings into the general budget, the plan outlines reinvesting these funds into Bitcoin as part of a “budget-neutral” acquisition strategy.
Trump’s Bitcoin Reserve Strategy
Since taking office, President Donald Trump has been vocal about the importance of Bitcoin in the modern financial landscape. His administration has pursued ways to incorporate Bitcoin into U.S. reserves without increasing the federal budget deficit.
This approach had initially been misunderstood by the market as a reluctance to purchase Bitcoin. However, the latest SEC proposal clarifies that the government intends to accumulate Bitcoin in a sustainable manner by reallocating funds rather than introducing new expenses.
Timeline for Implementation
The proposal outlines two possible paths:
- Accelerated Plan (1 year)
- Regulatory clearance in 1-3 months
- XRP-based payment testing in 2-4 months
- Full-scale financial integration within 9 months
- Bitcoin accumulation begins within the first year
- Relaxed Plan (2 years)
- Regulatory clearance in 3-6 months
- XRP payment testing in 6-12 months
- Full integration within 24 months
- Bitcoin accumulation starts after two years
A Game-Changer for Crypto Adoption?
This potential shift by the U.S. government could have significant implications for both XRP and Bitcoin. If executed, it would signal the most substantial institutional embrace of blockchain technology to date. XRP could see increased adoption in global finance, while Bitcoin could gain further legitimacy as a store of value at the highest governmental level.
Whether this move will have long-term bullish implications for Bitcoin remains to be seen, but it could mark a turning point in how nations approach digital assets.
Disclaimer: This article is for informational purposes only and should not be considered investment advice.
