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XRP Can't Be Confiscated by Government, Says Ex-Ripple Director, Here Are 3 Reasons Why

Thu, 01/12/2023 - 09:11
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Gamza Khanzadaev
Neither XRP buyback nor confiscation are possible, Matt Hamilton explains
XRP Can't Be Confiscated by Government, Says Ex-Ripple Director, Here Are 3 Reasons Why
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Ripple's former director of developer relations, Matt Hamilton, once again addressed the XRP community, clarifying rumors of a possible government buyback of the token from the market. Like last time, he stated that such a course of action would not be possible, the main reason being that the value of digital assets is ascribed by their users.

"XRP and Bitcoin have no intrinsic value; their value is determined by a set of transactional rules devised by a decentralized group of people," the developer argued.

XRP Buyback Not Possible, Says Ex-Ripple Executive

What XRP confiscation?

As well as refuting yet another round of nonsense about XRP being bought back by the government, Hamilton also broke down talk of possible confiscation. This speculation has emerged as an extension of the original conspiracy theory. As a reminder, there are rumors that XRP is to be confiscated from the market by the same government for its own use and so that the technology is not spread anywhere else.

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According to Hamilton, confiscation of XRP is impossible for at least three reasons. First, the developer notes, XRP is a decentralized cryptocurrency and cannot be seized without forcing key holders. Second, it is easier for the government to create its own digital token if it need it for its own use. Finally, if the U.S. government restricts everyone from using XRP, it would kill any use of the token and it would simply be replaced by a fork.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.