The digital currency XRP, developed by Ripple, is the focal point of recent debates in the cryptocurrency landscape, particularly around the concept of stablecoins. Sparking the conversation, a notable Ripple advocate, Wrath of Kahneman, along with former Ripple executive Sean McBride, engaged in a discourse on the prospects of Ripple launching a stablecoin. The conversation revolves around the potential benefits such a move would have on XRP’s position in the market.
Stablecoin Potential for XRP
McBride, while indulging in speculation, highlighted the World Bank’s identification of XRP as a stablecoin, hinting at the cryptocurrency’s possible evolution. This acknowledgement by the World Bank is seen as a commendation of Ripple’s efforts to establish XRP as a dependable mediator for international transactions.
Wrath of Kahneman championed the idea that the increasing interest in stablecoins could funnel substantial liquidity into the XRP Ledger (XRPL). He pointed out the current limitations due to XRP’s price fluctuations but also noted the potential advantages of introducing a fully regulated stablecoin to the ecosystem.
Strategic Decisions at Ripple
The deliberations also touched on why Ripple has refrained from creating its own stablecoin over the years. Crypto influencer Huber surmised that the company’s strategy to align XRP with Central Bank Digital Currencies (CBDCs) might have played a part in this decision. Additionally, Ripple’s perception of private stablecoins as competitive rather than complementary to XRP’s role in the market might have contributed to the status quo.
In the backdrop of these discussions, XRP has seen a 4.09% increase in its value in the past 24 hours. Despite this recent uptick, the cryptocurrency’s price has experienced a slight decline over the past month.