Ripple to Prioritize Stablecoin Over XRP in Billion Dollar Transaction Market? CTO David Schwartz Explains
  • Ripple will integrate its upcoming stablecoin into a multi-billion dollar trading market, offering users a better experience, lower fees, and faster settlements than existing options.
  • However, according to Ripple’s CTO David Schwartz, this does not eliminate XRP’s role in the ecosystem, and users who benefit from cryptocurrencies for payments and money transfers will still have access. That’s what it means.

There has been a lot of talk about Ripple’s next stablecoin, which is scheduled to launch on the XRP Ledger later this year. As reported by Crypto News Flash, some say the price of XRP will rise above $10 as this ecosystem becomes the hub of a multi-trillion dollar payments market. However, some are concerned that this could erode the XRP market, and Ripple’s chief technology officer David Schwartz recently shared his thoughts on this.

The upcoming stablecoin will be pegged 1:1 to the US dollar, directly competing with Circle’s USDC and Tether’s USDT. However, Ripple expects its vast network and 10 years of experience to give the new token a market edge.

But what happens to XRP when stablecoins target the payments and cross-border funds transfer markets? According to Schwartz, it doesn’t have to be one or the other.

Schwartz brought up X in response to concerns expressed by one XRP enthusiast about where future developments will leave the token. “Is this basically Ripple saying that XRP tokens are no longer needed for international payments from the US, nor are they needed to convert USD to the recipient’s home currency?” he said. Asked.

Schwartz said in his response that Ripple believes in a horse-for-course approach, and that not everything fits everyone the same way.

Does Ripple stablecoin threaten XRP?

Schwartz pointed out that Ripple aims to incorporate the payments market into the XRPL ecosystem, allowing payments to be made in XRP whenever convenient, but with the freedom to diversify if needs change.he said:

The idea is to get people to use payment software that “allows” them to pay with XRP. That way, there’s no reason why they can’t settle for XRP, which works best for them. It would be kind of stupid to try to force people to use a solution that is inferior.

He added that Ripple’s approach is that if XRP is the best solution, then “we don’t want any barriers to people getting the best experience using XRP.” However, if cryptocurrencies are not the best solution, Ripple does not want to force them on users who will suffer from a poor experience or worse financial situation.

When it comes to payments, it is logical to assume that there is no scenario where XRP is better than stablecoins, especially if both rely on the same XRP Ledger to process transactions. However, Schwartz took a different view of similar concerns, saying:

Stablecoins have no inherent advantage if you don’t hold intermediate assets for long periods of time. It will likely come down to issues such as liquidity and on/off ramp availability.

XRP is trading at $0.524, up 5% over the past week after trading sideways over the past two days.

Recommended for you:

Related Article


Leave a Comment