With the somewhat recent launch of Ripple’s RLUSD Stablecoin, debate within the XRP community has sparked the debate on XRP, debating the evolving role of XRP and this new digital dollar. Some community members have expressed concern that RLUSD could reduce XRP utilities, particularly in areas such as cross-border payments and liquidity regulations.
Community Concern: Will RLUSD sideline XRP utilities?
Since RLUSD can be used for everything else, we have highlighted the Ripple shift to minimizing the XRP role to minimize the XRP role. However, others pointed out XRP’s status as a liquidity engine rather than a gas token. In other words, XRP not only covers trading fees like Ethereum’s gas, but also promotes efficient value transfers across XRPL.
Also, some rude words were thrown in, what else can we expect from the X community?
Ripple CTO David Schwartz on XRP’s invaluable XRPL functions
Ripple’s Chief Technology Officer David Schwartz addressed some of these concerns last year when he highlighted the unique and irreplaceable features of XRP in his XRP ledger (XRPL).
Schwartz pointed out that XRP remains the only native asset to pay trading fees in XRPL. He also reminded the community that all XRPL accounts must maintain the minimum reserve balance for XRP and emphasize its basic role.
Understanding XRP and RLUSD: A clear role in Ripple’s vision
To be clear, RLUSD is Ripple’s enterprise-grade Stablecoin, fully supported by US dollar deposits, government bonds and cash equivalents. It is issued both on the XRP ledger and the Ethereum blockchain and is intended to provide stable, transparent, compliant digital assets for real-time global payments and seamless Fiat to crypto on/off ramps.
Additionally, RLUSD is designed to complement XRP by providing a stable exchange medium. This is especially useful for institutions and users who need price stability in their transactions. Since its launch, RLUSD has seen significant adoption, with over 95% of its transactions occurring in XRPL.
Meanwhile, XRP maintains a unique and essential role within XRPL. It acts as a bridge currency and supports liquidity between different assets on XRPL via features such as automatic bridges.
Also, unlike Stablecoins, XRP has no rebuttal or jurisdiction and is immune to freezing and clawback.
At the moment, XRP is on a fairly good pace, with the price at $2.30, a healthy 30% increase over the last 30 days.
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