World Bank’s Classification of XRP as a Stablecoin Sparks Debate
The World Bank’s recent research paper recognized XRP as a stablecoin, sparking discussions about its implications for Ripple and its future plans. Despite reports citing XRP’s volatility as a drawback for payments, the idea of integrating stablecoin functionality into $XRP remains highly speculative. Most community members argue that XRP can never be a stablecoin. The community is divided on the topic. Let’s see what the experts think.
World Bank’s Opinion on XRP’s Stability
The World Bank highlighted XRP, Ripple’s cross-border payment currency, as an example of a stablecoin due to its stability in value relative to fiat currencies. Sean McBride, a former director at Ripple, believes XRP could become a stablecoin, especially since the World Bank recognized it as one.The World Bank’s stance sparked controversy, with analysts speculating that it might be influenced by Ripple’s long-standing plans to launch a stablecoin.
Ripple’s Decision on Stablecoin Issuance
Ripple has yet to introduce a stablecoin on the XRP Ledger (XRPL), prompting questions about their strategic decisions. Speculation suggests that Ripple’s focus on positioning XRP as a bridge between different digital currencies, particularly Central Bank Digital Currencies (CBDCs), may have influenced this choice. Moreover, Ripple sees private stablecoins as competitors to XRP’s role as a bridge currency, which explains their reluctance to introduce one.
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