Ripple’s Chief Technology Officer (CTO), David Schwartz, has recently voiced his preference for XRP over Ripple’s upcoming stablecoin, RLUSD, for transactions on the XRP Ledger (XRPL).
He revealed this stance during a broader conversation among the XRP community about the company’s strategic decisions, including its unexpected shift towards smart contracts and RLUSD support on Ethereum.
Ripple’s recent move has led to a divergence of opinions within the community. Enthusiasts and investors are now questioning Ripple’s long-term goals, especially concerning how these decisions impact the role of XRP and its native ledger.
Concerns About Ripple’s New Direction
Green Sam (@HamEggsnSam), an XRP community member, has been vocal in his skepticism of Ripple’s recent moves. He expressed concern over the company’s focus on new technologies, particularly its introduction of smart contracts which drew criticism from the creator of XRPL Labs, the creators of the Hooks system which would have introduced smart contracts to the XRPL.
Sam also expressed concern about the decision to support RLUSD on Ethereum and Ripple’s pre-IPO stock buybacks. Sam’s worries center on the impact this shift may have on XRPL’s liquidity-building efforts, which, to him, seem overshadowed by the pivot toward Ethereum.
Sam also speculated that Ripple’s $1.4 billion stock buyback could signal a move to consolidate control within Ripple as the company nears its potential initial public offering (IPO). Sam questioned whether these decisions truly serve the community’s best interests or primarily benefit Ripple’s internal strategy.
Schwartz’s Response
Schwartz clarified Ripple’s position on the use of Ethereum, revealing that the company’s interaction with Ethereum is limited to supporting RLUSD on its chain. This drew a question from Jungle Inc, a prominent crypto YouTuber. Jungle Inc asked if half of RLUSD transactions would go through XRPL based on the company’s estimates.
Schwartz stated that his personal preference is to use XRP on XRPL for payments. However, he noted that everyone had their preferences on the XRPL, but would always choose the XRPL over the cost of a centralized exchange.
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Alternative Approaches
While some in the community support Schwartz’s preference for XRP, others propose alternative approaches. Franco Cappello (@loogart), a community member, suggested that Ripple could explore using RLUSD as a primary payment method, with XRP serving as a gas token to support transactions.
Cappello also raised the possibility of Ripple creating an overcollateralized stablecoin similar to DAI. This type of stablecoin could mitigate the risks of volatility while still leveraging XRP’s strengths.
Schwartz has also revealed that RLUSD will not diminish XRP’s significance, and it will be interesting to see the dynamic between these two digital assets when RLUSD launches.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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