- Ripple’s RLUSD stablecoin aims to challenge USDC and USDT, enhancing instant cross-border payments on XRP Ledger and Ethereum.
- Legal concerns loom over RLUSD’s launch, with experts warning of potential SEC scrutiny amidst Ripple’s ongoing lawsuit.
- Versan Aljarrah suggests XRP could aid a U.S. debt crisis, though skepticism remains about its global financial impact.
As per the reports, Ripple is looking to make its RLUSD stablecoin and ride the instant cross-border payment wave. This move will noticeably place Ripple in a competitive position to wrestle USDC from Circle and USDT from Tether for market share in the stablecoin market. It was at the XRP Ledger Community Summit in Amsterdam that Ripple first unveiled RLUSD.
There was mention of an official launch date of 2024, but none was provided. The launch of a dedicated homepage by Ripple for the stablecoin project has the XRP community buzzing.
The RLUSD stablecoin will be pegged to the USD dollar and, first of all, be available on the XRP Ledger and Ethereum. This integration aims to ease cross-border transactions via blockchain. Updates to Ripple’s website indicate that the company has concentrated on using the XRP Ledger for quick and affordable international payments.
Legal and Market Implications
Nonetheless, a few legal professionals advise against the introduction of RLUSD as it may lead to more legal disputes. According to the planned release, Ripple is expecting the ongoing Ripple v. SEC lawsuit to end favorably. Despite optimism from Ripple and some legal experts, there are warnings that the SEC might target the company over RLUSD.
Versan Aljarrah, the founder of Black Swan Capitalist, has sparked debate about XRP and RLUSD in the context of a potential U.S. debt crisis. Aljarrah posits that Japan’s potential fire sale of U.S. debt could cripple the U.S. Treasury. He highlights the urgent need for liquidity, suggesting XRP could fill this void. This assertion, however, has met with scepticism from other crypto traders.
Debates and Perspectives
Based on the idea that the Federal Reserve currency system will become vulnerable due to Japan selling off its U.S. debt holdings, Aljarrah makes the case that there will be a U.S. debt crisis.
He claims XRP has the potential to replace the US dollar because of its worldwide reach and liquidity characteristics. To strengthen XRP’s standing in the international financial system, the launch of RLUSD is also viewed as a calculated strategic move.
Critics contend that the most accessible and liquid financial instruments in the world are already US Treasury bonds. These assets are easily accessible to investors, including governments and sovereign bodies, with a $30 trillion market. It is very unlikely that XRP could supply the essential liquidity during a crisis.
Furthermore, XRP hasn’t demonstrated its worth in the global financial system on a broad scale. Its trading volume and market capitalization are lower than those of well-known financial assets such as US Treasury bonds. Furthermore, there are concerns regarding XRP’s usefulness as a crisis hedge due to the need for a clear correlation between it and traditional financial markets.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
