Recent discussions surrounding the stablecoin RLUSD have raised questions about its impact on XRP. Experts, including All Things XRP, explore potential consequences.
The Role of XRP in the XRPL Ecosystem
XRP occupies a unique position as the native asset of the XRPL. This role enables XRP to be the only asset on the ledger that can be used to pay transaction fees and does not require trust lines. Every transaction on the XRPL burns a small amount of XRP, maintaining its constant demand, even when users are working with RLUSD.
Advantages and Disadvantages of RLUSD
RLUSD can serve as a stable settlement tool, while XRP has been presented as the optimal choice for transaction processing due to its speed and global liquidity. The increase in RLUSD trading pairs may lead to greater usage of XRP in liquidity-related operations.
Agreement with Ripple's Position
Ripple's Chief Technology Officer, David Schwartz, argues that RLUSD will not replace XRP's core functions. XRP is protocol-level integrated, and its independence from a single issuer makes it universally accepted on the XRPL. It is also noteworthy that Ripple controls only about 1% of validators in the network, reducing the risk of unilateral control.
RLUSD should be seen as an additional driver of XRPL activity, likely leading to increased trading operations and, therefore, demand for XRP.
