- Ripple introduced RLUSD, a stablecoin on the XRP Ledger and Ethereum, sparking concerns about XRP’s future in ODL payments.
- Ripple CTO David Schwartz clarified that RLUSD won’t replace XRP; XRP remains vital as a bridge asset in cross-border transactions.
- RLUSD aims to complement XRP by offering stable value, while XRP is optimal for quick, efficient settlements in ODL transactions.
Ripple recently launched RLUSD, a new stablecoin tied to the US dollar, which will be available on the XRP Ledger and Ethereum. The move has sparked extensive debate within the XRP community over the potential implications on XRP’s position.
This is especially true for Ripple’s on-demand liquidity (ODL) services. RLUSD intends to improve cross-border payment options. It enables speedier and less expensive transactions which competes directly with other stablecoins, such as Tether (USDT).
Concerns Over XRP’s Role Spark Community Debate
As the launch of RLUSD approaches some XRP holders have expressed concerns. They are worried that Ripple might be shifting its focus away from XRP. RLUSD could potentially replace XRP in facilitating cross-border payments. This is particularly relevant in the U.S. market.
XRP’s Continued Importance
David Schwartz, Ripple’s CTO, has addressed these concerns by emphasizing that XRP’s role as bridge asset in ODL remains crucial. Schwartz stated that while RLUSD will offer new payment options it will not replace XRP. Instead, the stablecoin is designed to complement XRP.
RLUSD will provide additional flexibility in cases where stable value is preferred. He reiterated that Ripple’s goal is to promote solutions that can settle with XRP efficiently. This ensures that users will continue to utilize XRP where it offers the best performance.
Schwartz also pointed out that XRP’s utility in ODL transactions will depend on various factors such as liquidity and availability of on/off ramps. He stressed that XRP remains the optimal choice for settlements in cases where quick transfers are needed.
Ripple’s introduction of RLUSD has undoubtedly stirred discussions about the future of XRP in ODL transactions. However, with assurances from Ripple’s leadership, it appears that XRP’s role will not be diminished.
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