Throughout history, financial systems have risen and fallen alongside empires. Today, we stand at another turning point in the evolution of money. Digital currencies are gaining ground while traditional financial structures show signs of weakness. Technologies like Ripple and Stellar token might become the architects of tomorrow’s financial world. The convergence of monetary policy, debt cycles, and technological innovation suggests a complete redesign of how value moves through the global economy.
Vandell Aljarrah, a crypto analyst explains how XRP and XLM could transform the future of finance. He sees clear parallels between past empires and our current financial systems. He points out that Rome, Ming China, and other major empires all followed similar patterns when they reached critical debt levels. These patterns included currency debasement, inflation, and social unrest that eventually contributed to their downfall.
These historical examples help us understand our modern financial challenges. The cyclical nature of these collapses suggests we might be approaching a similar breaking point in our global financial system.
Debt, Inflation, and the Rise of XRP and XLM Tokens
Using debt to solve a debt crisis is a flawed approach that has failed throughout history, according to Aljarrah. Inflation goes through ups and downs during market crashes or recessions. But eventually, governments need to deal with massive debts, which leads to big changes in the system.
When governments pile up too much debt, they face tough choices. The inflation cycle follows a pattern where temporary fixes only delay the inevitable consequences.
Central banks are strategically adopting stablecoins, Aljarrah explains. These digital currencies are often pegged to gold or other real assets. They help maintain value in our increasingly digital economy.
Organizations like the IMF and the World Gold Council stress the importance of backing digital currencies with real assets. Aljarrah sees this as a return to basics rather than something revolutionary. Currencies historically got their value from physical backing before we moved to purely paper money.
Aljarrah believes XRP could become a bridge currency between financial institutions. It’s positioned to help banks and other financial entities settle transactions quickly in a two-tier system.
This emerging framework would have central bank digital currencies (CBDCs) existing alongside asset-backed stablecoins. This dual approach lets governments keep control of money while meeting the growing demand for digital transfers. XRP specifically addresses cross-border payment problems that traditional banking struggles with.
XRP, XLM, and the Centralized Future of Digital Finance
Stellar token is what Aljarrah calls a “nonprofit sibling” to XRP. It focuses more on person-to-person transactions. Both cryptocurrencies have strong technology behind them, but Aljarrah sees them serving different purposes in the new financial landscape.
XLM targets individual users and smaller organizations. It provides accessible financial services across borders. Aljarrah notes that XLM complements XRP’s focus on institutions, potentially creating a more complete digital financial ecosystem.
Aljarrah warns against thinking the digital financial shift will lead to decentralization. He believes the opposite is happening—centralization of power disguised as democratization of finance.
Control still remains with central banks and major financial institutions, regardless of new technology. The digital transformation might actually increase surveillance and control capabilities rather than reduce them.
Aljarrah compares today’s tokenization trend to the asset-backed securities that caused the 2008 financial crisis. While tokenization has benefits, it also creates opportunities for similar abuses.
Almost anything—from physical assets to debts—can be tokenized today. This flexibility opens the door to complex financial instruments that might hide underlying risks, just like mortgage-backed securities did before the last major crisis.
Read Also: How High Can the XLM Price Spike in 2025? Stellar Price Predictions
Digital Currency and the Call for Financial Vigilance
The move toward digital currencies might reduce civil liberties, according to Aljarrah. He criticizes what he sees as a false promise of freedom through digitalization. He emphasizes the continuing importance of physical assets like gold.
Digital systems require permissions and can be controlled in ways that physical assets cannot. This creates new vulnerabilities for individual financial freedom that many cryptocurrency enthusiasts might not see.
Aljarrah calls for personal responsibility when navigating this digital transition. He encourages a skeptical, informed approach based on moral principles rather than just chasing profits.
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