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Here's How XRP Can Become Stablecoin, Explains XRPL Lead Developer

Thu, 12/29/2022 - 15:06
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Gamza Khanzadaev
XRP can become stablecoin, but only under these conditions
Here's How XRP Can Become Stablecoin, Explains XRPL Lead Developer
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XRP Ledger and Xumm Wallet lead developer Wietse Wind, in an interaction with one of his followers, revealed a theoretical scenario in which XRP could become a stablecoin. Wind's concept followed after he stated that 1 XRP equals 1 XRP directly, in the manner of Michael Saylor or Changpeng Zhao.

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Stable XRP worlds

In fact, there are two scenarios proposed by the developer, both of which are rather impossible in their own right. The first assumes that all on-/off-ramp and centralized and decentralized crypto venues would only sell XRP for a certain amount of fiat. Wind rejected that on the grounds that there are too many crypto platforms.

The second scenario sounds even crazier, as it assumes that businesses and people will start valuing goods and services at a fixed XRP value. Obviously, such a development would require a global consensus, which is unlikely ever to happen.

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That said, the developer's basic thesis that 1 XRP equals 1 XRP was about a more down-to-earth matter. For example, Wind argues that XRP only begins to have a value in dollar or forex equivalent when it comes into contact with the world outside of the XRPL network, where the cryptocurrency "lives" initially.

XRP's equivalent price is in dollars or whatever is determined by supply and demand, and since the price people are offering is unstable, so is XRP, the developer summed up.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.