Ripple CTO Shares His Thoughts on Why He Prefers Using XRP on XRPL Instead of RLUSD
In a recent discussion, Schwartz expressed his viewpoint in a recent post on X in response to community inquiries about Ripple’s business strategy shifts. Green Sam, a crypto enthusiast, initiated the discussion by expressing concerns about Ripple’s pivot towards smart contracts, Ethereum support, and pre-IPO stock buyback.
Sam questioned the reasoning behind these moves and Ripple’s decision to facilitate RLUSD on the Ethereum chain. He also raised doubts about the effectiveness of liquidity-building efforts on XRPL and the implications of the $1.4 billion buyback before Ripple’s anticipated IPO, suggesting it could be an attempt to consolidate control or mitigate risks before going public.
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Schwartz Stance Using XRP on XRPL
In response, David Schwartz pointed out that the only involvement with Ethereum is the support for RLUSD on its chain. Additionally, Jungle, an XRP community figure, inquired about the potential for at least half of Ripple’s RLUSD payments to be processed on XRPL, expressing concerns about XRPL’s role in Ripple’s broader payment flow.
Schwartz emphasized his preference for using XRP on XRPL rather than relying on RLUSD for transactions, noting the community’s likely agreement on this preference. He also highlighted the cost-saving benefits of using XRPL as opposed to centralized exchanges.
Another Responses From Community Members
Nevertheless, some community members, such as Franco Cappello, proposed an alternative approach, suggesting embracing RLUSD for payments and using XRP as a gas token. Cappello argued in favor of developing an overcollateralized stablecoin similar to DAI, leveraging XRP’s strengths while eliminating counterparty risk and volatility, particularly with the introduction of smart contracts.
Concurrently, another commenter expressed deep concerns regarding the introduction of smart contracts on XRPL, labeling it as a “red herring” and suggesting that it could undermine XRP’s value and betray the XRP community’s interests. Separately, Ripple’s CTO has clarified the rationale behind the strategic move to introduce smart contracts to XRPL.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
