Ripple CTO Dispels XRP Community Doubts on RLUSD Stablecoin

As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find myself constantly intrigued by the evolving landscape of Ripple and XRP. The forthcoming launch of Ripple USD (RLUSD) has stirred up quite a buzz, and understandably so. However, the implications for XRP’s role in Ripple’s cross-border business are causing a stir within the community.


The highly anticipated release in the cryptocurrency sector is almost here as Ripple USD (RLUSD), a cross-border payment provider based in San Francisco, seems to be nearing the end of its research and development phase. Notably, the minting and burning of RLUSD are increasing rapidly, reaching millions in value.

The swift evolution of the ecosystem, traditionally focused on XRP and the XRP Ledger, has inevitably sparked feelings of apprehension and worry within the community, leading some to question the future significance of XRP in Ripple’s international transaction operations.

In the most recent installment of the discussion, David Schwartz, the Chief Technical Officer, was pressed to put an end to the ongoing speculation and offer definitive responses regarding whether RLUSD (Ripple-issued USD stablecoin) would have a favorable impact on XRP.

XRP is the only asset to…”

As a researcher exploring the intricacies of the XRP Ledger, I’d like to highlight that XRP plays a pivotal role in transaction fees within this system. It is crucial to note that every single transaction on the XRP Ledger necessitates the use of XRP. This distinctive asset stands out due to its lack of counterparty or jurisdiction, rendering it impervious to freezes or clawbacks. Furthermore, XRP boasts structural advantages through innovative features like autobridging.

Despite the fact that he admitted the possible issues XRP might encounter if stablecoins like RLUSD surpass it in carrying out its intended function, it’s worth noting that if RLUSD or any other stablecoin can execute tasks more effectively than XRP, this could result in a decrease in XRP’s relevance, regardless of how well RLUSD performs.

On the XRP Ledger (XRPL), XRP serves as the primary method for settling transaction fees. To engage in transactions, it’s essential to possess XRP to cover these fees. Unlike other assets, XRP can be held by every account without any associated counterparty or jurisdiction risks. This means that it cannot be seized or reclaimed. Moreover, XRP boasts unique structural benefits on the XRPL.— David “JoelKatz” Schwartz (@JoelKatz) October 8, 2024

In simpler terms, the Chief Technology Officer shared his viewpoint that boosting XRP‘s scarcity by raising fees isn’t something to focus on immediately. Instead, he feels that the main purpose of the XRP Ledger should be catering to its users, rather than individuals who hold XRP for passive income.

Yet, he pointed out that implementing smart contracts might result in higher transaction costs.

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2024-10-08 16:59