The Ripple Effect: Understanding XRP’s Position in the Stablecoin Debate
The post The Ripple Effect: Understanding XRP’s Position in the Stablecoin Debate appeared first on Coinpedia Fintech News
Mr. Huber, a respected member of the XRP community, recently questioned why Ripple hasn’t introduced its stablecoin on the XRP Ledger (XRPL) despite its significant role in the network’s growth. While Ripple uses the XRPL for products like Ripple Payments, it hasn’t launched a stablecoin, unlike other blockchains.
Questioning Ripple’s Strategy
Recently, the on-chain investigator asked a few simple questions and validated why Ripple has not helped add a liquid stablecoin to the XRPL ecosystem. Although Ripple is one of many XRPL builders, it is the largest and has contributed the most to its growth.
Mr. Huber thinks this situation is strange, especially since stablecoins have become popular and are now used on many networks. COTI put DJED on the Cardano mainnet in January of last year. In September 2023, Near Protocol also added USDC.
Ripple is Stuck With Bigger Plans for XRP
He further checks on stablecoins like Stably USD (USDS) on the XRPL; Ripple has not developed its stablecoin for its products. Instead, the company continues to use XRP as a bridge currency for cross-border settlements despite its volatility.
The analyst believes that Ripple remains committed to this approach due to the near-instant nature of cross-border transactions facilitated by XRP. Plus, he speculates that Ripple might be eyeing XRP’s potential as a bridge between central bank digital currencies (CBDCs) of different countries.
Overall, these could be the possible reasons, as stated by Mr. Huber. While some community members think that Ripple could be considering using XRP as a stablecoin, others suggest that competition in the stablecoin market may be a factor in Ripple’s decision. However, these are just speculations, and Ripple’s rationale for not introducing a stablecoin to the XRPL remains unclear.
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The Ripple Effect: Understanding XRP’s Position in the Stablecoin Debate
The post The Ripple Effect: Understanding XRP’s Position in the Stablecoin Debate appeared first on Coinpedia Fintech News
Mr. Huber, a respected member of the XRP community, recently questioned why Ripple hasn’t introduced its stablecoin on the XRP Ledger (XRPL) despite its significant role in the network’s growth. While Ripple uses the XRPL for products like Ripple Payments, it hasn’t launched a stablecoin, unlike other blockchains.
Questioning Ripple’s Strategy
Recently, the on-chain investigator asked a few simple questions and validated why Ripple has not helped add a liquid stablecoin to the XRPL ecosystem. Although Ripple is one of many XRPL builders, it is the largest and has contributed the most to its growth.
Mr. Huber thinks this situation is strange, especially since stablecoins have become popular and are now used on many networks. COTI put DJED on the Cardano mainnet in January of last year. In September 2023, Near Protocol also added USDC.
Ripple is Stuck With Bigger Plans for XRP
He further checks on stablecoins like Stably USD (USDS) on the XRPL; Ripple has not developed its stablecoin for its products. Instead, the company continues to use XRP as a bridge currency for cross-border settlements despite its volatility.
The analyst believes that Ripple remains committed to this approach due to the near-instant nature of cross-border transactions facilitated by XRP. Plus, he speculates that Ripple might be eyeing XRP’s potential as a bridge between central bank digital currencies (CBDCs) of different countries.
Overall, these could be the possible reasons, as stated by Mr. Huber. While some community members think that Ripple could be considering using XRP as a stablecoin, others suggest that competition in the stablecoin market may be a factor in Ripple’s decision. However, these are just speculations, and Ripple’s rationale for not introducing a stablecoin to the XRPL remains unclear.
Read More