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Recent inquiries have been made about Ripple’s Stablecoin, and the potential impact it could have on the XRP eco-system. Discussion was sparked after Ripple’s Eric van Miltenburg made statements suggesting the stablecoin would enhance rather than degrade the XRP Ledger.
However, Questions have been raised regarding David Schwartz, Ripple CTO clarified the role of XRP in Ripple’s stablecoin.
Eric van Miltenburg is Ripple’s SVP of Strategic Initiatives. Recently, there have been comments on the forthcoming The Ripple Stablecoin is a hint at the potential benefits it could bring to the XRP Ecosystem. Ripple has historically used XRP for many cross-border payments. The emergence of a stabilcoin may impact XRP’s value.
Miltenburg also addressed the concerns that the stablecoin would overshadow XRP by stating its launch on XRPL will ultimately benefit the eco-system.
He draws parallels with stablecoins that are integrated into other Blockchains, such as Polygon. This move, he says, could enhance the trust in the blockchain by increasing the TVL (total value locked) on the XRP Ledger.
Crypto Eri’s Inquiry
Nevertheless, some members of the XRP Community are still sceptical and want clarification on specific aspects. Crypto Eri, a prominent XRP figure, sought clarifications from Ripple CTO David Schwartz in response to Miltenburg’s comments.
Could you please help me understand?
In an interview with Digital Frontiers, Eric Van Miltenburg (Ripple SVP), explained that Ripple uses stablecoins for certain payment corridors within its network.
ok, but…
The… pic.twitter.com/BrgZkyc7Xd
— Crypto Eri Carpe Diem (@sentosumosaba) April 25, 2024
Eri questioned if the XRP Ripple held would be included in the “cash-equivalent” that backs the stablecoin.
Schwartz Clarifies His Response
Schwartz responded by explaining that there was currently no native way to “lock” up assets on XRPL. Miltenburg may have meant to refer to the impact of stablecoins on blockchain activity, not TVL specifics.
You’d expect people to use…
— David “JoelKatz” Schwartz (@JoelKatz) April 25, 2024
Schwartz outlined the potential uses for stablecoins based on XRPL. These include providing a way for people to store funds and not be exposed to cryptocurrency volatility, as well as serving as a currency for businesses. Assets for Automated Market Makers (AMMs). He also noted that the addition of stablecoins to XRPL could improve its usability.
The XRP community is eagerly awaiting the next developments as the landscape of digital assets continues to evolve.
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Mustafa Mulla
Mustafa is a writer who has written about Blockchain technology and cryptocurrency for many years. He is a former trader and works in Fintech since 2017.