Jed McCaleb’s departure from Ripple in 2014 has long been the subject of speculation. Many believed it was the end of his involvement with the company, but what if it wasn’t a breakup? What if Jed’s split was a strategic move, part of a bigger plan to create a parallel blockchain system?
Ripple & Stellar: Split That Wasn’t a Split
Jed McCaleb, one of Ripple’s co-founders, was key in designing XRP’s early framework. He helped build XRP’s architecture and contributed to Ripple’s initial success. After some disagreements, Jed McCaleb left Ripple in 2014 and quickly started Stellar (XLM).
(1/) Jed Didn’t Leave Ripple. He Was Assigned to Start Stellar.
You were told it was all falling out. But what if Jed McCaleb’s split wasn’t a breakup… It was a deployment? And what if XRP and XLM were never rivals — but two arms of the same global plan? Let’s dive deep: pic.twitter.com/0v53GExE3j
While many thought it was a breakup, the timing looks more like a planned move. It happened just as Ripple was growing in the world of big finance and global payment systems.
Eventually, if we look at the timing of Jed’s departure, it aligns perfectly with Ripple’s institutional expansion, the rise of the ISO 20022 standard, and discussions by global financial bodies like the IMF, the BIS, and the WEF about the future of payments.
This suggests that Jed wasn’t leaving; he was deployed to launch the second half of a global payment solution.
XRP and XLM: Complementary, Not Competitive
Ripple’s XRP and Stellar’s XLM were never rivals; they were two parts of the same global plan. XRP focuses on improving liquidity, enabling cross-border payments, and supporting central bank digital currencies (CBDCs) in the financial industry.
On the other hand, Stellar works on bringing blockchain technology to underserved communities, humanitarian efforts, and retail stablecoin transactions.
Strategic Partnerships on Both Sides
Both Ripple and Stellar have quietly secured powerful partnerships. Ripple works with major financial institutions like Bank of America and SBI, supporting international banking systems.
Meanwhile, Stellar is closely tied to humanitarian projects, with the United Nations using it for blockchain-based aid and Franklin Templeton using it for tokenizing assets.
Jed McCaleb’s exit from Ripple wasn’t an accident; it was part of a well-timed plan. As Ripple focused on the institutional side, McCaleb’s Stellar project set out to bring the power of blockchain to the people.
China’s recent directive for its state-owned banks to decrease reliance on the US dollar has amplified a growing trend among countries seeking alternatives to the dominant reserve assets. In some instances, Bitcoin has emerged as a viable competitor.
BeInCrypto spoke with experts from VanEck, CoinGecko, Gate.io, HashKey Research, and Humanity Protocol to understand Bitcoin’s rise as an alternative to the US dollar and its potential for greater influence in global geopolitics.
The Push for De-Dollarization
Since the 2008 global financial crisis, China has gradually reduced its reliance on the US dollar. The People’s Bank of China (PBOC) has now instructed state-owned banks to reduce dollar purchases amid the heightened trade war with US President Donald Trump.
China is among many nations seeking to lessen its dependence on the dollar. Russia, like its southern neighbor, has received an increasing number of Western sanctions– especially following its invasion of Ukraine.
Furthermore, Rosneft, a major Russian commodities producer, has issued RMB-denominated bonds, indicating a shift towards RBM, the Chinese currency, and a move away from Western currencies due to sanctions.
This global shift away from predominant reserve currencies is not limited to countries affected by Western sanctions. Aiming to increase the Rupee’s international use, India has secured agreements for oil purchases in Indian Rupee (INR) and trade with Malaysia in INR.
The country has also pursued creating a local currency settlement system with nine other central banks.
As more nations consider alternatives to the US dollar’s dominance, Bitcoin has emerged as a functional monetary tool that can serve as an alternative reserve asset.
Why Nations Are Turning to Bitcoin for Trade Independence
Interest in using cryptocurrency for purposes beyond international trade has also grown. In a notable development, China and Russia have reportedly settled some energy transactions using Bitcoin and other digital assets.
“Sovereign adoption of Bitcoin is accelerating this year as demand grows for neutral payments rails that can circumvent USD sanctions,” Matthew Sigel, Head of Digital Assets Research at VanEck, told BeInCrypto.
Two weeks ago, France’s Minister of Digital Affairs proposed using the surplus production of EDF, the country’s state-owned energy giant, to mine Bitcoin.
Last week, Pakistan announced similar plans to allocate part of its surplus electricity to Bitcoin mining and AI data centers.
Meanwhile, on April 10, New Hampshire’s House passed HB302, a Bitcoin reserve bill, by a 192-179 vote, sending it to the Senate. This development makes New Hampshire the fourth state, after Arizona, Texas, and Oklahoma, to have such a bill pass a legislative chamber.
If HB302 is approved by the Senate and signed into law, the state treasurer could invest up to 10% of the general fund and other authorized funds in precious metals and specific digital assets like Bitcoin.
According to industry experts, this is only the beginning.
VanEck Predicts Bitcoin to Become a Future Reserve Asset
Sigel predicts Bitcoin will become a key medium of exchange by 2025 and, ultimately, one of the world’s reserve currencies.
His forecasts suggest Bitcoin could settle 10% of global international trade and 5% of global domestic trade. This scenario would lead to central banks holding 2.5% of their assets in BTC.
According to him, China’s recent de-dollarization will prompt other nations to follow suit and lessen their reliance on the US dollar.
“China’s de-dollarization efforts are already having second- and third-order effects that create opportunities for alternative assets like Bitcoin. When the world’s second-largest economy actively reduces its exposure to US Treasuries and promotes cross-border trade in yuan or through mechanisms like the mBridge project, it signals to other nations—especially those with strained ties to the West—that the dollar is no longer the only game in town,” Sigel said.
For Zhong Yang Chan, Head of Research at CoinGecko, these efforts could prove catastrophic for the United States’ dominance.
“Broader de-dollarization efforts by China, or other major economies, will threaten the status of the dollar’s global reserve currency status. This could have [a] profound impact on the US and its economy, as this would lead to nations reducing their holdings of US treasuries, which the US relies on to finance its national debt,” he told BeInCrypto.
However, the strength of the US dollar and other dominant currencies has already shown signs of weakening.
A General Wave of Currency Decline
Sigel’s research shows that the four strongest global currencies—the US dollar, Japanese yen, British pound, and European euro—have lost value over time, particularly in cross-border payments.
The decline of these currencies creates a void where Bitcoin can gain traction as a key alternative for international trade settlements.
“This shift isn’t purely about promoting the yuan. It’s also about minimizing vulnerability to US sanctions and the politicization of payment rails like SWIFT. That opens the door for neutral, non-sovereign assets—especially those that are digitally native, decentralized, and liquid,” Sigel added.
This lack of national allegiance also sets Bitcoin apart from traditional currencies.
Bitcoin’s Appeal: A Non-Sovereign Alternative
Unlike fiat money or central bank digital currencies (CBDCs), Bitcoin doesn’t respond to any one nation, which makes it appealing to some countries.
For Terence Kwok, CEO and Founder of Humanity Protocol, recent geopolitical tensions have heightened this belief.
For these same reasons, experts don’t expect Bitcoin to replace fiat currencies fully but rather provide a vital alternative for certain cases.
A Replacement or an Alternative?
While Bitcoin offers several advantages over traditional currencies, Gate.io’s Kevin Lee doesn’t foresee its eventual adoption causing a complete overhaul of the currency reserve system.
Recent data confirms this. The number of Bitcoin transactions has fallen significantly since the last quarter of 2024. Bitcoin registered over 610,684 transactions in November, but that number dropped to 376,369 in April, according to Glassnode data.
The number of Bitcoin active addresses paints a similar picture. In December, the network had nearly 891,623 addresses. Today, that number stands at 609,614.
Bitcoin number of active addresses. Source: Glassnode.
This decline suggests reduced demand for its blockchain in terms of transactions, usage, and adoption, meaning fewer people are actively using it for transfers, business, or Bitcoin-based applications.
Meanwhile, the Bitcoin network must also ensure its infrastructure is efficient enough to meet global demand.
Can Bitcoin Scale for Global Use?
In 2018, Lightning Labs launched the Lightning Network to reduce the cost and time required for cryptocurrency transactions. Currently, the Bitcoin network can only handle around seven transactions per second, while Visa, for example, handles around 65,000.
“If expansion solutions (such as the Lightning Network) fail to become popular, Bitcoin’s ability to process only about 7 transactions per second will be difficult to support global demand. At the same time, as Bitcoin block rewards are gradually halved, the decline in miners’ income may threaten the long-term security of the network,” Guo, Director of HashKey Research explained.
While the confluence of geopolitical shifts and Bitcoin’s inherent characteristics undeniably create a space for its increased adoption as an alternative to the US dollar and even a potential reserve asset, significant hurdles remain.
Achieving mainstream Bitcoin adoption hinges on overcoming scalability, volatility, regulatory hurdles, stablecoin competition, and ensuring network security.
The unfolding panorama suggests Bitcoin will carve out an important role in the global financial system, though a complete overhaul of established norms seems unlikely in the immediate future.
The Bolivia’s state energy firm, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) plans to adopt crypto payments for the procurement of fuels as the country faces acute shortage of the foreign currency and fuel supply.officials of the company recently stated that the government of the country had endorsed the use of digital assets in the purchase of fuel thus changing its stance on cross border operations.
Bolivia Approves Crypto Payments for Fuel Amid Economic Challenges
As per the latest information, YPFB has developed a system to carry out crypto transaction on imported fuel. This, the company said, will assist in solving the scarcity of the US dollars that has occasioned the challenge of fuel importation in the country.
A spokesperson for YPFB confirmed that while crypto transactions had been approved, the firm had not yet initiated any purchases using digital currencies. However, the plan is expected to be implemented soon to support the country’s fuel subsidy programs.
Bolivia, which was once a major energy exporter, has faced a decline in domestic gas production. The lack of new gas discoveries and reduced exports have contributed to a shortfall in foreign currency reserves. As a result, the country has become increasingly dependent on fuel imports to meet domestic demand.
With the growing crypto payment adoption, regulatory policies are shifting to accommodate the expanding industry. Most recently, Donald Trump revealed plans to sign an executive order to reverse banking restrictions on crypto firms, easing their access to financial services. This move aims to reshape U.S. crypto policy by rolling back limitations imposed during the Biden administration.
Government Aims to Stabilize Fuel Market with Crypto Payments
Officials have stated that crypto payments will be used strategically to support the country’s fuel market. By leveraging digital assets, Bolivia aims to ensure a continuous supply of fuel without disruptions caused by currency shortages. This decision aligns with broader efforts to explore alternative financial solutions amid economic pressures.
Despite this move, authorities have not specified which cryptocurrencies will be used for transactions.
With the growing crypto payment adoption, Ripple recently expanded its services to Portugal and Brazil through a partnership with Unicâmbio. The collaboration enables near-instant, low-cost cross-border transactions using blockchain technology. This move strengthens financial ties between the two nations while reinforcing crypto payments in Latin America.
Russia’s Central Bank Proposes Crypto Trading for Investors
Meanwhile, Russia’s central bank has proposed a limited framework allowing qualified investors to trade crypto assets, including Bitcoin. The plan includes a three-year experimental regime for investors who meet strict financial criteria.
The Russian government has not yet approved the proposal, and cryptocurrencies remain restricted for general use. However, the plan aims to enhance market transparency and regulate investment activities related to digital assets.
In the last 15 days, VC fundings for Bitcoin mining infrastructure has increased dramatically. From Auradine to Bitdeer – various such companies have received million dollar support.
In another instance of it, Riot, a NASDAQ listed Bitcoin mining infrastructure provider, has received $100 mn support. The support in the form of credit facility has been provided by leading crypto exchange, Coinbase.
The capital injection will be used to expand Riot’s mining infrastructure, fund renewable energy initiatives. It will also develop its proprietary software stack aimed at increasing efficiency in mining operations.
In the past, Coinbase has also provided $50 mn funding to another mining company, Hut 8 as well.
Riot Receives $100M – Latest VC Funding
Riot plans to use a significant portion of the new funding to expand its Rockdale and Corsicana mining facilities in Texas. These are two of the largest mining campuses in North America.
The company also announced plans to build out a new 300-megawatt site powered by solar and wind energy. This is in alignment with growing pressure from both regulators and investors to make crypto mining more sustainable.
Energy sourcing has become a critical factor in determining a mining firm’s long-term viability.
Riot, which already engages in demand-response programs with Texas’ ERCOT grid, is betting big on renewable integration as a competitive edge.
Riot Platforms Announces $100 Million Credit Facility with @Coinbase.
“Riot has entered into its first bitcoin-backed facility, which provides us with non-dilutive funding at an attractive cost of financing,” said @JasonLes_, CEO of Riot. “This credit facility is a key part of… https://t.co/GWAbpWy2pY
Riot’s raise is just one part of a larger trend. Bitcoin mining companies has raised over $88 million globally in Q1 2025. Among the fundings, U.S.-based firms are continuing to receive the bulk of it.
Industry leaders such as Marathon Digital and CleanSpark have also expanded operations aggressively in recent months.
This resurgence is being driven by more than just the Bitcoin price. Government officials in the U.S. are increasingly viewing domestic mining as a strategic economic and energy play.
The sector’s ability to act as a “load balancer” for renewable-heavy grids, coupled with the geopolitical appeal of controlling hash power, has led to new incentives and regulatory clarity.
Despite the bullish trend, challenges remain. Energy price fluctuations, environmental scrutiny, and rising global competition could put pressure on miners’ margins.
The impact of higher interest rates also looms over capital-intensive projects like mining facility expansion.
Still, Riot’s $100 million raise sends a strong signal that the Bitcoin mining industry is maturing. The continued VC fundings can serve as boost for the onging development in the sector.
) Jed Didn’t Leave Ripple. He Was Assigned to Start Stellar.
(@StellarNews007) April 26, 2025
