Ripple‘s Chief Technology Officer (CTO), David Schwartz, publicly replied to queries about the forthcoming Ripple stablecoin and how it may or may not affect XRP`s role in cross-border transactions. The discussion arose after Ripple announced its new stablecoin, which would run on both the XRPL and Ethereum networks. This particular move spurred discussions related to the evolution of the digital payment industry and Ripple’s business strategy.
Schwartz narrowed the focus on perfect XRP deployment, where possible. He asserted that the rollout of a new payment mode that falls short of the current methods would not reflect the enterprise’s goals. This is done so that not only investors but also customers who use XRP can be confident that the company is as focused now as it was then on the viability and effectiveness of XRP as a means of making payments.
US government may favor Ripple stablecoin
Market reactions to Ripple’s announcement have been very encouraging, which indicates that the market is optimistic about the inclusion of a stablecoin into Ripple’s ecosystem. Nevertheless, questions about its future performance are still around, especially on account of the ongoing law battles in the United States and the possibility that the new stablecoin could overshadow it in some transaction scenarios.
Legal documents, typical of the ongoing Ripple vs. SEC case, demonstrate that the [US Government] might prefer the use of the stablecoin for US-based transactions. It is conjectured that this is Ripple’s response to the legal mysteries surrounding XRP. Ripple has yet to confirm these rumors. The company’s strategy can be characterized by the utilization of the stablecoin to enhance the transaction efficiency of the company’s U.S. users.
Ripple balances XRP and stablecoin in transactions
There were talks as to whether or not the stablecoin would affect XRP’s functionality in Ripple’s On-Demand Liquidity (ODL) service. In this regard, Schwartz highlighted the fact that the choice between XRP and stablecoins as the bridge asset depends on numerous other transaction elements, such as the holding of the bridge asset. He pointed out that in these kinds of transactions where assets are held for short periods, there may not be any real advantages offered by the stablecoin compared to XRP.
Schwartz also pointed out that liquidity and the accessibility of on/off ramps are essential for determining which asset is the best suitable for certain transactions. After saying this, we discover his point of view on payment choices in digital finance and Ripple’s strategy for overcoming these problems. Ripple strives to make each asset available wherever it adds to the economic betterment of the user.
This emphasis reveals Ripple’s main purpose, which is to support the approach of using the most effective digital payment solutions in order to ensure that this approach is characterized by meeting users’ needs and regulatory frameworks.
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