In the cryptocurrency community, a common question arises about the relevance of XRP given the existence of RLUSD. This article examines how both assets complement each other.
XRP as the Foundation for International Payments
XRP is the native digital asset of the XRP Ledger (XRPL), supporting Ripple's global payment network, RippleNet. XRP acts primarily as a bridge currency, facilitating fast and cost-efficient cross-border transactions. This foundational role is emphasized in Aljarrah's analogy that 'XRP is the train, RippleNet lays the tracks.'
RLUSD’s Purpose in the Ecosystem
RLUSD was introduced to address use cases where price stability is essential. This U.S. dollar-pegged asset offers a reliable medium of exchange and store of value, crucial for businesses and consumers who require predictable value without exposure to cryptocurrency volatility.
Distinct and Complementary Roles
Experts clarify that RLUSD is not intended to replace XRP but rather to complement it. XRP remains vital for liquidity provisioning and international settlements, while RLUSD serves as a stable transactional currency. This distinction highlights Ripple's strategy to cater to diverse market needs.
Both XRP and RLUSD play significant roles in the Ripple ecosystem, with each asset complementing the other in various aspects of financial transactions. Their collaboration enhances Ripple's functionality and adoption in the global market.
