A new debate has emerged within the XRP community, fueled by Ripple’s launch of RLUSD, a multi-chain stablecoin. While some see RLUSD as a potential rival to XRP, others believe it presents an opportunity for both assets to thrive. Ripple’s ambitious project aims to establish its stablecoin on Ethereum and XRP Ledger, but the implications are raising questions about the future role of XRP in Ripple’s ecosystem.
Stellar Expert has raised concerns that RLUSD’s cross-chain functionality could lead to a shift in focus away from XRP, particularly if institutions prefer RLUSD for faster transactions and regulatory compliance. He argues that if RLUSD gains traction, it could displace XRP as the preferred option in certain use cases, mirroring the trajectory of Tether’s USDT which found success on TRON.
However, Ripple has countered these concerns by emphasizing the distinct roles of both assets. Ripple President Monica Long clarified that RLUSD and XRP are not competing, with specific applications depending on client needs. CTO David Schwartz highlighted XRP’s role in powering transactions on the XRP Ledger and serving as a core utility asset.
Furthermore, Ripple has emphasized that XRP still holds value for certain clients who prefer its speed and low fees, particularly compared to the more expensive Ethereum. The article highlights the potential positive impact of RLUSD’s success: increased activity within the XRP network could lead to more XRP transactions and further fuel its utility.
The future of XRP remains uncertain. While the launch of RLUSD poses new challenges for XRP’s future, it also presents opportunities for both assets to coexist and evolve within Ripple’s ecosystem. The outcome will be determined by the choices made by institutions and Ripple itself in the coming years.