One of the most anticipated launches in the crypto space is nearing as the San Francisco-based cross-border payment provider's Ripple USD (RLUSD) enters what appears to be the final stages of its research and development, with mints and burns of RLUSD accelerating to millions in value.
The rapid change in the ecosystem, which has long been centered around XRP and XRP Ledger, has naturally caused some anxiety and concern among community members, with some asking what will happen to XRP's role in Ripple's cross-border business.
Yuri MolchanIn the latest episode of this debate, Chief Technical Officer David Schwartz was asked to end speculation on the matter and provide concrete answers once and for all on whether RLUSD will be a net positive for XRP.
"XRP is the only asset to…"
In response to these concerns, Schwartz emphasized that XRP is essential for transaction fees on XRP Ledger and stressed that every transaction must involve XRP. This unique asset has no counterparty or jurisdiction, making it immune to freezes or clawbacks. It also offers structural advantages through features such as autobridging.
Alex DovbnyaHowever, he acknowledged the potential challenges XRP could face if stablecoins outperform it in fulfilling its intended role. If RLUSD or any other stablecoin can perform tasks better than XRP, it could lead to a decline in XRP's importance, regardless of RLUSD's results.
The CTO also expressed the opinion that raising fees to increase XRP's scarcity is not a priority. He believes that the XRP Ledger should primarily serve its users, rather than those who hold XRP for passive gains.
However, he noted that the introduction of smart contracts could lead to increased transaction fees.
Godfrey Benjamin
Alex Dovbnya
Dan Burgin
Vladislav Sopov
U.Today Editorial Team