Ripple (XRPUSD)

[WiseYoda]

This is speculation based on the World Bank categorizing XRP as a stable coin as well as what Ripples CTO David Schwartz stated in an interview. Its worth noting that since 2012 no stable coin has ever been on the XRPL. I don’t think thats by accident.

Two scenarios here. Lets say for the first scenario XRP becomes a neutral stable coin for cross border transactions for CBDC’s.

Well, it can’t be cheap because you cant be using hundred of millions of XRP to send CBDC’s all around the world so it would have to be pegged to an asset like gold or to a basket of currencies.

A second scenario would be using cryptocurrencies themselves to back a stable coin. Schwartz says XRP could be used to “back” a stable coin. This means you would have a stable coin pegged to whatever asset or currency its pegged to and XRP. It would be a two tier system that would use a cryptocurrency as collateral.

Schwartz explains XRP being used in a different form like this and described it as a different unit of account but it would still be considered a stable coin because it would be backing a stable coin.

This scenario would make CBDC’s attractive enough for the public to accept as a form of payment. It would be having a two tier system for the stablecoin that would be used to send CBDC’s all around the world.

TWITTER LINK:

To clarify the conclusion I’ve come up with Capco doc regarding XRP as a stablecoin, we look at David Schwartz XRP backed stablecoin further in detail. It’s not XRP that will be backed but XRP that’ll back the stablecoin. stablecoin is still XRP but w/a different unit of account! https://t.co/NamPXPmSFP pic.twitter.com/A75Juy4Yq5

— Mickey_B_Fresh☀️🪝 (@MrFreshTime) May 11, 2020