XRP’s Potential as a Stablecoin
There has been speculation about whether Ripple’s XRP could become a stablecoin in the future. Sean McBride, a former director at Ripple, discussed this possibility in response to a tweet from a prominent Ripple supporter. McBride pointed out that the World Bank has classified XRP as a stablecoin, suggesting that it could potentially transition into one rather than being a new US-pegged crypto by Ripple.
World Bank’s Recognition of XRP
The World Bank’s recognition of XRP as a stablecoin is significant as it highlights the growing acceptance and utility of Ripple’s native crypto in the global financial landscape. This validation supports Ripple’s efforts to position XRP as a reliable bridge currency for cross-border payments and settlements.
Controversial Stance by the World Bank
However, it is important to note that the World Bank’s classification of XRP as a stablecoin is controversial. Some analysts believe that this classification may be based on XRPL’s plans to introduce a stablecoin, rather than any concrete evidence. The speculations about XRP becoming a stablecoin are considered baseless by some experts.
Potential Benefits of a Stablecoin for Ripple
A supporter of XRP, Wrath of Kahneman, expressed enthusiasm for the idea of Ripple introducing a stablecoin. He believes that a fully regulated stablecoin could bring massive liquidity to the XRPL and address concerns about XRP’s volatility in payments.
Ripple’s Strategic Decision
Questions were raised regarding Ripple’s decision not to launch a liquid stablecoin on the XRPL in the past decade. It has been suggested that Ripple prioritizes establishing XRP as a bridge currency between Central Bank Digital Currencies (CBDCs) and views private stablecoins as competitors. The ongoing debate surrounding Ripple’s strategic direction is influenced by McBride’s defense of XRP’s utility and the World Bank’s recognition of its stability.
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