Monica Long, the President of Ripple, recently shed light on the distinct yet supportive roles that the upcoming RLUSD stablecoin will play in tandem with XRP, catering to both developers and payment processors.
During her appearance on The Scoop podcast, Long was prompted to clarify the rationale behind introducing RLUSD for international transactions when XRP already serves this purpose. She elaborated on the unique advantages stablecoins offer over XRP in certain scenarios.
**Ripple’s Perspective on RLUSD and XRP:**
Ripple views RLUSD and XRP as mutually beneficial, addressing the needs of two distinct customer groups: those involved in payments and those who develop on the platform.
**RLUSD’s Role in Payment Transactions:**
Long pointed out that in some cases, customers prefer transactions to be finalized in US dollars due to cost efficiency. This is particularly true for well-established trading pairs like USD/EUR, where the market liquidity is high enough that a bridging asset such as XRP isn’t required.
Moreover, Long emphasized that the XRP Ledger’s users have always seen XRP as an impartial cryptocurrency ideal for bridging purposes. Ripple has consistently advocated for XRP’s role as a bridge asset since its inception, envisioning a future where diverse assets are tokenized and transacted on-chain, known as the Internet of Value.
XRP stands out as a vital tool for effective cross-currency or cross-token settlements, especially for less commonly traded assets and currencies. Long highlighted situations in regions like sub-Saharan Africa, Europe, and the Middle East, where transaction costs can skyrocket due to low liquidity, sometimes exceeding 10% of the payment value. In such cases, XRP becomes indispensable.
**RLUSD’s Appeal to Developers:**
From a developer’s standpoint, Long recognized the US dollar as the industry’s gateway currency, serving as the initial step for purchasing cryptocurrencies or other tokenized assets and for trading activities.
She underscored Ripple’s optimism about the growth potential of the decentralized exchange (DEX) on the XRP Ledger. For the DEX to truly benefit developers, the presence of high-quality stablecoins is crucial.
Consequently, Long disclosed Ripple’s increased focus on the DeFi sector, with USD stablecoins playing a central role in this ecosystem.
The recent discussion on RLUSD’s supportive function alongside XRP has garnered considerable interest within the XRP community. Vet, a dUNL validator on the XRP Ledger, commented on Long’s interview, offering further insights.
In past discussions, Ripple’s CTO David Schwartz and other executives have stressed that RLUSD is designed to enhance, not replace, the utilities of XRP.
**Disclaimer:** This article is for informational purposes only and should not be taken as financial advice. The opinions expressed herein may be personal to the author and do not necessarily represent the views of The Crypto Basic. Readers should conduct their own research before making any investment decisions. The Crypto Basic assumes no responsibility for any financial losses incurred.