Kevin Warsh wants to repeat the ~1946 financial repression strategy with a modern twist.
Cryptocurrency.
$XRP and
$ZBCN now have a partnership (via
@Ripple ) and my thesis is based on all of these following events.
Why XRP and ZBCN are my go to investments:
Full Scenario Summary (Warsh-Era Crypto-Driven Debt Unwind)
•Macro Setup: Kevin Warsh becomes Fed Chair → lowers policy rates → inflation pressures rise from cheaper credit and velocity → massive stablecoin issuance (en masse) creates structural, price-insensitive demand for US Treasuries (short-term T-bills/repos) to finance deficits privately, anchor inflation, and enable sustained low rates without Fed monetization.
•Core Adoptions:
◦Stablecoins become primary Treasury buyer → $5–20T market cap (absorbing 15–50% of new issuance).
◦XRP widely adopted by banks as native bridge/liquidity/settlement layer for stablecoin scaling, cross-border rails, and ecosystem flows.
◦Ripple-ZBCN partnership → real-time streaming payroll, treasury management, and PayFi (debit cards/SuperApps) on XRPL rails for global wage and B2B flows.
◦XRP additionally used for derivatives markets (settlement, margin/collateral, variation margin on tokenized/OTC flows).
◦XRP further used for RWA tokenization (real estate, bonds, private credit, funds, commodities) → issuance, trading, income distribution, and collateral.
•Economic Outcome: Total crypto market cap scales to $20T–$100T → drives explosive nominal US GDP growth (11–15% annualized) to ~$200–280T over 10–20 years → compresses gross federal debt-to-GDP from current ~122–125% down to target 25% while inflation stays anchored via narrow-banking effects and private Treasury demand.
•Adoption Levels (Systemic Scale):
◦Stablecoins: Multi-trillion annual Treasury buying daily settlement flows.
◦XRP: Trillions in daily/annual notional across payments, payroll streaming, derivatives (~$7–14T/day global notional), and RWAs ($10–50T tokenized assets).
◦ZBCN: Powers real-time payroll/PayFi on same rails → multi-trillion wage/treasury flows with revenue-funded token burns/buybacks.
•Scalable Price Levels (Equilibrium for Liquidity Depth & Velocity):
◦XRP: $100–$1,000 (market cap $3–30T on ~62B circulating supply; supports institutional block trades and high-velocity micro-settlements without friction).
◦ZBCN: $2–$50 (market cap $200B–$5T on 100B fixed supply; amplified by deflationary mechanics as volumes explode).
These prices and liquidity thresholds turn XRP/ZBCN into foundational infrastructure powering the GDP miracle, private deficit financing, and inflation control in the scenario.