A recent post by crypto influencer RipplePumpkin highlights the claim that XRP will maintain the same value across public and private ledgers. This discussion is supported by Ripple CTO David Schwartz, who explains XRP's significance as a currency for CBDC settlements.
The Importance of XRP for Central Banks
In the video, David Schwartz addresses the question of whether there is a value discrepancy of XRP between public and private ledgers. He claims that the core value of XRP lies in its access to global liquidity pools, which inherently discourages isolated pricing. He states, 'The public XRP ledger will have the same value as the private ledger.'
Common Pricing Paradoxes
Schwartz references a price disparity phenomenon known as the 'kimchi premium' to illustrate that discrepancies arise from structural barriers, such as capital controls, rather than market forces. He adds that regulatory hurdles may occasionally create price discrepancies, but such situations typically signify inefficiency that the market tends to correct.
Future Perspectives on XRP Usage
RipplePumpkin projects a price increase for XRP as central banks utilize it as a bridge asset on the private ledger. This perspective reinforces Schwartz’s argument about interoperability and liquidity as central to XRP's function, emphasizing that price parity is a natural outcome.
The public/private ledger discussion is becoming increasingly significant to XRP's narrative as various financial institutions explore blockchain-based solutions. Schwartz's comments and RipplePumpkin's support reaffirm that XRP's value is expected to stay unified across different ledger types.
