Jerome Powell finished his eight-year run as head of the Federal Reserve on Friday, with Kevin Warsh taking over as the seventeenth Chair of the central bank.
With President Trump publicly disagreeing with Jerome Powell over interest rates, his next nominee for Federal Reserve chair is likely to be more flexible when it comes to monetary policy. The nominee’s previous support for Bitcoin has led some fans of other cryptocurrencies to wonder if that support will extend to those assets as well.
So, we wondered if XRP, one of the biggest cryptocurrencies besides stablecoins, could also see positive results. We asked a leading AI model for its opinion.
Far More Nuanced
Gemini believes Bitcoin gains strength from being seen as a store of value, similar to gold. However, the future for alternative cryptocurrencies like XRP is more complicated, especially if a Warsh-led Federal Reserve comes to pass. They suggest that a new Fed chair led by Warsh would likely combine firm economic control with a willingness to consider new financial technologies, which could significantly affect Ripple and its ecosystem.
Before taking office, his financial disclosures showed he had invested in various parts of the cryptocurrency world, including decentralized finance (DeFi), foundational blockchains, and digital currency platforms. This suggests he sees cryptocurrency as more than just a way to hold value – he’s interested in its practical uses as well.
What’s particularly relevant for XRP is that Warsh has consistently discussed the need to update our financial systems. He’s previously stated that central banks should actively explore digital currencies and has advocated for the US to develop its own digital currency – a central bank digital currency – to stay competitive with other countries, like China and its digital yuan.
Ripple is setting up the XRP Ledger to be a neutral connector between different central bank digital currencies (CBDCs), potentially making those currencies more useful and efficient.
Gemini believes that if the Federal Reserve Chair seriously considers adding digital currency built on blockchain technology to the existing financial system, it would significantly benefit Ripple’s business.
But There’s More
While many are optimistic about the future, the AI also pointed out that Warsh has consistently highlighted how the growth of digital assets is mainly due to easy money policies. Like most cryptocurrencies other than Bitcoin, XRP depends significantly on a lot of money flowing into the market.
Gemini predicts borrowing money will likely become more costly in the US, as someone like Warsh would probably aim to decrease the Federal Reserve’s involvement in financial markets. In times when money is scarce, investors usually move away from riskier cryptocurrencies and invest in more secure options like Bitcoin, Gemini added.
If the new Federal Reserve Chair follows through on plans to raise real interest rates and reduce the Fed’s holdings, XRP’s price could fall significantly due to a decrease in investment.
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2026-05-24 15:04