Key Takeaways:
- Durham University’s study defines XRP as “a radical form of commodity money.”
- XRP bridges social trust and financial technology through “digital metallism.”
- A new U.S. bipartisan bill could formally recognize XRP as a digital commodity under CFTC regulation.
Durham University Research Backs XRP’s Commodity Narrative
A research paper from Durham University has resurfaced in crypto discussions after labeling Ripple a “radical form of commodity money.” The renewed attention follows bipartisan efforts in the U.S. Senate to clarify the legal status of digital assets like XRP and Bitcoin.
SMQKE, a blockchain researcher, recently highlighted the five-year-old paper written by Ludovico Rella in the Journal of Cultural Economy. The study examined Ripple and XRP’s evolution, framing them as part of a broader conversation about how money functions as both a social construct and technological innovation.
XRP’s Dual Role in Modern Finance
Rella argued that XRP operates in two main capacities: as a digital commodity and as a key liquidity tool within Ripple’s cross-border payment system. He traced Ripple’s journey from its early “mutual credit system” roots—built on user trust—to today’s blockchain-based payment infrastructure prioritizing speed, efficiency, and liquidity.
In this context, XRP evolved from a community credit token into a bridge asset capable of transferring value globally, independent of banks or intermediaries. This transformation, according to Rella, positions XRP as a unique asset class within the digital economy.
“Digital Metallism”: XRP as Self-Contained Value
Rella introduced the term “digital metallism” to describe XRP’s structure as a self-contained, pre-mined digital asset that holds intrinsic value—similar to gold. Unlike securities or fiat-backed tokens, XRP functions without liabilities, corporate shares, or intermediaries, making it an autonomous form of money.
This idea of Ripple as “a radical form of commodity money” underscores its independence and its role in bridging two opposing financial visions: one centered on community trust and the other on technological efficiency.
Bipartisan Efforts Could Cement XRP’s Commodity Status
The revived discussion coincides with the Bipartisan Market Structure Draft, a proposal from the U.S. Senate Committee on Agriculture. The bill aims to define clear jurisdiction between the CFTC and SEC, placing digital commodities like Ripple under CFTC oversight.
Also Read: XRP Surges as SEC Drops Ripple Appeal: Gensler Speaks Out Amid Crypto Regulatory Shift
Crypto commentators note that this could reinforce the 2023 court ruling declaring XRP not a security. Within the Ripple community, the move is seen as a step toward long-awaited regulatory clarity, potentially validating XRP’s role as both a financial utility and a commodity.
