Insights from Ripple’s CTO on the XRP Ledger’s Value and Network Focus
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Understanding the XRP Ledger’s Utility and Its Influence on XRP’s Value
David Schwartz, the Chief Technology Officer of Ripple, recently shared insights regarding the true value of the XRP Ledger (XRPL) and its primary purpose. In an online discussion, he emphasized that while the XRPL does not directly cause price surges for XRP, it undeniably enhances the token’s intrinsic value due to its essential function within the network.
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The Core Purpose of the XRP Ledger
According to Schwartz, the XRP Ledger was meticulously engineered to serve as a rapid, cost-effective, and dependable native token, decentralized exchange (DEX), and payment system for users requiring such features. Interestingly, its primary goal was never to inflate XRP’s market value.
Nevertheless, the Ripple CTO acknowledged that as the XRP Ledger gains wider adoption, it inevitably adds to the value of XRP. This appreciation stems from XRP’s unique position as the sole asset on the network with no associated counterparty, making it universally accessible. Furthermore, it benefits from being “jurisdictionless” and is favored by the principle of autobridging.
XRP’s Role Amidst Emerging Stablecoins
Despite the introduction of the RLUSD stablecoin, Schwartz affirmed that XRP would continue to serve as the bridge currency within the XRP Ledger. He pointed out the proliferation of stablecoins, which inhibits any single one from assuming the bridge currency role. XRP, however, retains supremacy due to its greater global acceptance compared to these stablecoins.
Addressing concerns over XRP’s short- to medium-term price movements, Schwartz emphasized that utility is paramount, as long as the network remains stable, trustworthy, and ensures that XRP remains scarce, fungible, resistant to censorship, and easy to own and transfer.
Ripple’s Strategic Expansion with XRPL and RLUSD
Ripple recently revealed a strategic collaboration with Mastercard, WebBank, and Gemini. This partnership aims to explore the deployment of RLUSD on the XRP Ledger, facilitating blockchain-based settlement processes between Mastercard and WebBank, the issuer of the Gemini credit card. Notably, the crypto exchange has rolled out several credit cards, including one dedicated to XRP.
This initiative, beginning with the Gemini XRP card, is expected to significantly enhance XRP’s adoption. Pro-XRP attorney Bill Morgan highlighted in an online post that the number of XRP transactions has surged since Ripple’s initial RLUSD issuance. He noted community expectations that Ripple’s latest initiative could further boost XRP’s transaction volumes once the RLUSD settlement is operational on the blockchain.
As of this writing, XRP is valued at approximately $2.34, reflecting an increase of over 4% in the past 24 hours, according to CoinMarketCap data.
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