Ripple USD (RLUSD) is nearing its launch as the San Francisco-based cross-border payment provider accelerates its development. Recent mints and burns of RLUSD have surged to millions in value, signaling significant progress. This rapid evolution in Ripple’s ecosystem, which primarily focuses on XRP and the XRP Ledger, has sparked anxiety within the community. Members are increasingly concerned about XRP’s role in Ripple’s cross-border payment operations.
During a recent conversation, Ripple’s CTO David Schwartz provided direct solutions while emphasizing that XRP is still required to pay transaction fees on the XRP Ledger, despite inquiries about how RLUSD correlates with XRP. Additionally, XRP is involved in every transaction on the network; hence, its importance will never fade. This type of digital asset is unlike any other in that it does not have a counterparty or a jurisdiction to which it can be frozen or clawed back. In addition, XRP offers structural advantages, such as auto bridging, amongst other things.
Also Read: Binance Reports Significant XRP Reserves Increase Amid Shifting Stablecoin Trends
The Challenges Ahead for XRP
Schwartz acknowledged potential challenges for XRP, noting that its importance could decline if stablecoins like RLUSD outperform XRP in their intended roles. Schwartz explained that new stablecoins with improved efficiency could alter the function of XRP in Ripple’s payment system. He assured the public that there are no plans to increase fees to make XRP scarce in the market. That is why he thinks that the XRP Ledger should focus on its users instead.
Advertisement
This view lays the foundation for a major change of direction at Ripple as it explores new technologies. The company’s vision and goals are focused on improving user satisfaction rather than those looking for profit from the passive ownership of XRP. Looking forward to the RLUSD’s release by Ripple, the community has keenly waited to observe how this new stablecoin will exist in parallel with XRP.
Schwartz’s comments have ignited further debate about the future of XRP. While the community remains hopeful about RLUSD, questions linger about the dynamics between XRP and emerging stablecoins. The successful launch of RLUSD may redefine the landscape for Ripple and its ecosystem, shaping the future of cross-border payments.
Also Read: Ripple Burns Millions of RLUSD Stablecoins Amid Cautionary Alerts to Users
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.