Ripple Insider Reveals How RLUSD Will Boost XRP
The post Ripple Insider Reveals How RLUSD Will Boost XRP appeared on BitcoinEthereumNews.com.
A former Ripple employee has provided detailed insights on how Ripple’s upcoming RLUSD stablecoin will benefit XRP rather than harm it. This insight was shared in a conversation with Tony Edward, the host of the Thinking Crypto podcast. Notably, this Ripple alum was part of the team that developed Ripple’s On-Demand Liquidity (ODL) product, now known as Ripple Payments. RLUSD Will Be Paired with XRP for Greater Liquidity The former employee revealed they have long advocated for Ripple to launch a stablecoin. When asked whether RLUSD could negatively impact XRP, they suggested quite the opposite. According to their insights, the stablecoin is expected to be paired with XRP, benefiting from greater liquidity, as XRP is tradable on virtually all crypto exchanges globally. Moreover, the connection between XRP and RLUSD is expected to help stabilize the stablecoin, preventing de-pegging issues that have challenged other stablecoins. The former Ripple insider emphasized that RLUSD will unlock new opportunities in forex and other financial sectors. Concerns About RLUSD Arrival Notably, crypto community members who argue that RLUSD’s arrival will negatively impact XRP often theorize that Ripple is moving away from XRP for cross-border payment processes to a stablecoin alternative. They believe RLUSD aims to usurp XRP’s position in Ripple’s payment network. However, reputable figures in the XRP community, including top executives at Ripple, have reiterated that RLUSD would benefit XRP rather than harm it. Ripple CTO David Schwartz emphasized this perspective during the 2024 XRP Ledger Apex summit. He explained that the evolution of DeFi has highlighted the importance of stablecoins. They serve essential functions like pricing and trading while avoiding market exposure. Schwartz noted that different asset classes are needed for effective DeFi participation and emphasized that liquidity in trading favors XRP. He stated that introducing RLUSD will enhance use cases rather than…
Filed under: News - @ October 1, 2024 7:28 am