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Ripple Has No Plans to Launch Its Own Stablecoin, Says CTO David Schwartz

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Wed, 06/03/2020 - 17:28
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Alex Dovbnya
David Schwartz, the CTO of Ripple, says the company has no plans to issue its own stablecoins, but it encourages third parties to create them on top of the XRP Ledger
Ripple Has No Plans to Launch Its Own Stablecoin, Says CTO David Schwartz
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In a recent tweet, Ripple CTO David Schwartz has debunked the rumors that the San Francisco-based company has its own stablecoin in the pipeline.

Schwartz
image by @JoelKatz

Schwartz left the aforementioned comment in response to a YouTube user who claimed that Ripple had plans to issue a fiat-pegged cryptocurrency that would kill XRP.    

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XRP-based stablecoins 

Back in February, Ripple published the 19th episode of ‘The Ripple Drop’ series where Schwartz announced new improvements that would be added to the XRP Ledger in the future.  

 

One of them would let other third parties create stablecoins on top of the XRP Ledger. It fueled speculations that the blockchain decacorn itself might venture into this rapidly growing niche of the crypto industry.    

In the above-mentioned tweet, Schwartz claims that Ripple is interested in both stablecoins issued by counterparties and XRP-collateralized ones.   

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Tether vs. XRP 

Fiat-pegged cryptocurrencies have exploded this year after the March market crash. Their cumulative value has already surpassed the $10 bln mark. 

Tether (USDT), the leading stablecoin, has flipped XRP, becoming the third-largest asset by market capitalization.

Speaking of the rivalry, Schwartz mentioned that these two cryptocurrencies had ‘different use cases.’

He doesn’t think that USDT could be universal since it’s is backed by government-issued money and controlled by a centralized company.

Meanwhile, Schwartz believes that many use cases are not suitable for XRP because of the token’s volatility.   

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.