Ripple CEO States RLUSD Complements XRP

Ripple CEO Brad Garlinghouse responded to discussions suggesting that the RLUSD stablecoin would undermine the future of XRP. Garlinghouse stated that RLUSD and XRP are not competitors but rather complementary assets. While XRP plays a critical role in the fundamental operation of the system as the native asset on the XRP Ledger, RLUSD is designed for transactions requiring price stability. The requirement for each account on the XRP Ledger to hold a certain amount of XRP as a reserve and to pay transaction fees in XRP ensures that XRP is a necessary element for the network's operation. RLUSD, on the other hand, is dollar-based and aims to maintain its value around 1 dollar. While Ripple can freeze RLUSD in certain situations, there is no such central freezing authority for XRP. Garlinghouse emphasized the importance of XRP's central role in the network's automated bridging system and liquidity providers. RLUSD is considered more suitable for areas such as payroll payments and institutional transfers. The fact that RLUSD is not limited to the XRP Ledger indicates that an increase in demand does not necessarily mean a proportional increase in the use of the XRP Ledger. Garlinghouse stressed that Ripple will not abandon XRP and that despite the growth of RLUSD, XRP's role will be preserved.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.