As Ripple gets ready to launch its RLUSD stablecoin, some in the XRP community are concerned about how it might affect XRP’s relevance. RLUSD, now in beta testing, is set to be released soon and will be available on both the XRP Ledger (XRPL) and Ethereum. It could also play a part in Ripple’s On-Demand Liquidity (ODL) services.
While RLUSD offers exciting potential, some supporters are worried it might reduce the importance of XRP, especially for cross-border payments. Read on for the details, and decide for yourself.
David Schwartz, Ripple’s CTO, responded by assuring that XRP has certain features on the XRPL that RLUSD can’t replace. For example, only XRP can pay transaction fees on the XRPL, and each account must hold a reserve of XRP. He also pointed out that XRP’s big advantage over stablecoins is that it has no counterparty risk and isn’t tied to any jurisdiction, unlike stablecoins.
Schwartz highlighted XRP’s “autobridging” function, which automatically connects liquidity between different assets on the XRPL.
This makes XRP a crucial part of the system, not just for transactions but as a bridge asset between digital currencies.
Schwartz did admit that if RLUSD or other stablecoins become more efficient, XRP might face competition. However, he believes that XRP’s unique features make it hard for stablecoins to fully replace it.
Some in the XRP community have suggested raising transaction fees or the minimum balance of XRP on the XRPL to make XRP more scarce and possibly increase its value. Schwartz explained that such changes would need agreement from the community and said the XRPL should focus on usability rather than speculation.
Ripple’s exploration of new features, like the EVM sidechain and smart contracts, aims to expand XRPL’s functionality while ensuring XRP’s critical role remains irreplaceable.
At the moment, XRP is trading at $0.53, down by 0.8%. The market outlook is mixed. A bullish pennant pattern on the weekly chart suggests that XRP could break out soon.
Meanwhile, the 14-day Relative Strength Index (RSI) is at 37.96, indicating that XRP is nearing oversold levels, which could lead to a small price increase. If Ripple’s legal issues are resolved, some experts believe XRP could see significant gains, with price predictions ranging between $2.47 and $10 in a strong market.
What do you think? Will RLUSD jeopardize XRP’s future?
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