Sean McBride, a former Ripple director, suggested that XRP might transform into a stablecoin in light of the World Bank’s approval.
Ripple’s XRP is once more in the news due to the multi-year stablecoin mania that has surrounded XRP Ledger (XRPL). Sean McBride, a former director at Ripple, participated in a discourse incited by a tweet attributed to Wrath of Kahneman, a notable Ripple supporter.
The discourse on Twitter centered on the possible distribution of a stablecoin by Ripple and the resulting ramifications for the position of XRP within the ecosystem.
Could XRP Develop Into a Stablecoin?
McBride acknowledged the rumors but reaffirmed his conviction regarding the practicality of XRP and the advancements being achieved in its implementation.
Moreover, he emphasized the World Bank’s categorization of XRP as a stablecoin, alluding to the likelihood that it will transition into a stablecoin rather than a new US-pegged cryptocurrency developed by Ripple in the future.
The increasing recognition and practicality of Ripple’s native cryptocurrency as a stablecoin by the World Bank highlights its significance in the international financial sphere.
This recognition offers substantial support for Ripple’s endeavors to establish XRP as a dependable bridge currency for international transactions and settlements.
It should be noted, however, that the World Bank’s position is somewhat controversial. Analysts have reiterated the possibility that the World Bank may have classified XRP as a stablecoin, given that the XRPL has for years declared its intention to introduce a stablecoin. Also, The rumors concerning the Ripple-backed cryptocurrency’s conversion into a stablecoin have been deemed unfounded.
Nevertheless, in response to McBride’s reply, Wrath of Kahneman reaffirmed his steadfast endorsement of XRP. He observed that a revolution in stablecoins for Ripple could generate enormous amounts of liquidity. “So many reports note XRP volatility as a drawback for payments. I don’t see it that way but wonder if a fully regulated stable could draw that liquidity to the ledger.”
Why Has Ripple Not Yet Introduced A Stablecoin?
Nevertheless, inquiries were also prompted by the discourse regarding Ripple’s omission of a liquid stablecoin on the XRPL during the previous ten years. Mr. Huber, a prominent figure in the cryptocurrency industry, speculated that Ripple’s intention to establish XRP as a bridge currency between Central Bank Digital Currencies (CBDCs) might have had an impact on this determination.
Furthermore, he placed emphasis on the fact that Ripple perceives private stablecoins as rival technologies, thereby giving precedence to the function of its native token as a bridge currency.
As the discussion surrounding Ripple’s strategic trajectory persists, McBride’s assertion concerning the practicality of XRP and the World Bank’s acknowledgement of its stability emerge as persuasive elements within the ongoing dialogue.