Ripple‘s leading altcoin XRP has once again taken center stage amidst the ongoing stablecoin frenzy surrounding the XRP Ledger (XRPL). A tweet by a prominent Ripple supporter known as Wrath of Kahneman sparked a discussion that former Ripple executive Sean McBride joined with intriguing speculation. The discussion considered the possibility of Ripple issuing a stablecoin and its potential impact on XRP’s role within the ecosystem.
“World Bank Classifies XRP as a Stablecoin”
While McBride admitted to speculating, he reiterated his confidence in the benefits of XRP and the progress made in its adoption. He pointed to the World Bank’s classification of XRP as a stablecoin, suggesting that instead of Ripple introducing a new cryptocurrency specific to the US, there is a possibility that XRP could transform into a stablecoin in the future.
Although the World Bank’s recognition of XRP as a stablecoin is a significant validation of Ripple’s efforts to position XRP as a reliable bridge currency for cross-border payments and settlements, analysts suggest that the World Bank’s classification could be debatable due to XRPL’s longstanding plans to introduce a stablecoin.
Wrath of Kahneman, expressing steadfast support for XRP, highlighted the potential for the stablecoin wave to bring significant liquidity to the XRPL. While pointing out the perceived disadvantage of XRP’s volatility in payments, he noted the impact of a fully regulated stablecoin on attracting liquidity to the ledger.
Ripple’s Decision Not to Launch a Stablecoin May Be Due to CBDCs
The discussion also raised questions about Ripple’s decision not to offer a liquid stablecoin on the XRPL over the past decade. Leading crypto influencer Huber suggested that Ripple’s focus on positioning XRP as a bridge currency among Central Bank Digital Currencies (CBDCs) could have influenced this decision. Moreover, Ripple’s view of private stablecoins as competing technologies is likely a result of prioritizing XRP’s role as a bridge currency.
Amid the stablecoin debate, XRP has been observed to rise 4.09% in the last 24 hours, trading at $0.5527. Data shows the popular altcoin’s price has increased by 4.22% over the past week but has fallen by 3.65% in the last 30 days.
