Since Ripple unveiled the Ripple USD (RLUSD), FUD (Fear, Doubt, Uncertainty) spreaders have been disseminating misinformation about its potential
Despite Ripple’s recent unveiling of the Ripple USD (RLUSD), some FUD (Fear, Doubt, Uncertainty) spreaders have been attempting to link the upcoming stablecoin to XRP in a negative light. They’ve been spreading rumors that the stablecoin, which is pegged to the US dollar, will either dilute the utility of XRP or impede its growth. Additionally, some are claiming that Ripple will either abandon XRP or prioritize RLUSD more.
However, these claims are unfounded and contradict statements made by Ripple executives. David Schwartz, the Chief Technology Officer at Ripple, has highlighted the importance of XRP to the XRP Ledger (XRPL), which serves as the platform for RLUSD. According to Schwartz, XRP is vital for the security of all transactions on the blockchain. He stated that nothing can move on XRPL without XRP unless the consensus introduces changes to the underlying rules.
Furthermore, Monica Long, the president of Ripple, emphasized the crucial role of XRP in an interview with The Scoop’s Frank Chaparro.
Ripple President Highlights Advantages of RLUSD, XRP
The interview with Long primarily focused on the story behind the launch of RLUSD and its potential impact on the future of digital payments. The Ripple president highlighted the role of stablecoins as a “viable gateway for new users to confidently embrace crypto and blockchain solutions.” This is due to the ability of stablecoins to minimize the volatility that is typically associated with cryptocurrencies.
Moreover, Long explained that stablecoins combine the security, speed, accessibility, efficiency, practicality, and scalability of blockchain with the stability of traditional currencies, offering users the best of both worlds.
However, Long later clarified that XRP will continue to be a “vital bridge asset for more complex currency flows.” She added that XRP is specifically tailored for “long-tail corridors with lower liquidity.”
According to Long, XRP enables a “more direct transaction path,” which significantly reduces transaction times and fees, which can sometimes exceed 10% in some markets.
The Ripple president concluded by stating that “RLUSD is both additive and complementary to XRP.” Essentially, RLUSD is optimal for dollar-denominated transactions, while XRP serves as an alternative for a more efficient and cost-effective medium for cross-currency settlements.
