Cryptocurrency

World Bank Classification of XRP as Stablecoin Sparks Debate Among XRP Army

The ongoing discussion surrounding the potential stablecoin issuance on the XRP Ledger (XRPL) has reignited with a recent post from Wrath of Kahneman (@WKahneman), who asked when Ripple would issue its stablecoin.

This question brought other questions from Wrath of Kahneman and community members, drawing the attention of former Ripple director Sean McBride. With the growing popularity of stablecoins, speculation is rising about XRP’s future role within the ecosystem, especially if Ripple decides to introduce a stablecoin.

Speculation Surrounds Potential Ripple-Issued Stablecoin

McBride, while acknowledging the increasing speculation, reiterated his belief in XRP’s established utility and growing adoption. Notably, he highlighted the World Bank’s classification of XRP as a stablecoin, sparking discussion about whether this signifies a future transformation or simply aligns with XRPL’s plans for a distinct stablecoin offering.

The World Bank’s recognition undoubtedly adds a layer of validation to Ripple’s efforts in positioning XRP as a reliable bridge currency for cross-border transactions.

An expert recently revealed that Ripple is fully committed to the goal of making XRP a global reserve currency, and this classification underscores the growing acceptance and potential of XRP within the global financial landscape.

Potential Roadblocks

However, it is crucial to acknowledge the nuances surrounding this classification. Some experts have pointed out that the World Bank’s categorization might be the result of XRPL’s announced plans for a separate stablecoin, rather than directly endorsing XRP as a stablecoin. Additionally, previous suggestions regarding a Ripple-backed stablecoin remain unsubstantiated.

Support for XRP and Stablecoin Integration

Despite the surrounding speculation, Wrath of Kahneman expressed his support for XRP, emphasizing the potential benefits of a stablecoin revolution.

He highlighted the possible influx of liquidity, stating that many reports cite XRP’s volatility as a hurdle, although he disagrees with this stance. However, that leaves him with the question of whether a fully regulated stablecoin could attract liquidity to XRPL.

Unanswered Questions Regarding Ripple’s Strategy

The discussion raises pertinent questions about Ripple’s decision to refrain from introducing a stablecoin on the XRPL despite years of opportunity. However, Ripple is pushing XRP as a bridge currency for cross-border transactions, and XRP’s insanely fast transaction speed can overcome the volatility problem.

While the debate regarding Ripple’s strategic direction continues, both McBride’s defense of XRP’s utility and the World Bank’s classification as a stablecoin contribute significant points to the conversation.

Despite all the progress Ripple is making in trying to establish XRP as a bridge currency, its poor performance has caused some dissatisfaction in the community, as a prominent community member recently revealed that investors are selling XRP to buy better-performing cryptocurrencies.


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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.

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