- Ripple’s plan to revolutionize is threatened by stablecoins
- Stablecoins are emerging and getting ready to take over the digital currency market
- XRP and other low priced digital currencies are fighting to maintain relevance
Ripple News Today – Ripple was once seen as the incumbent to a brave new world of practical digital currencies. There was news that the native currency of Ripple – XRP (XRP) – had the potential outperform Bitcoin in terms of usage and adoption, with Ripple using its cost-effective and swift transaction framework to take the world into the future of practical cryptocurrency.
Ripple News Today – Ripple Promised to Revolutionize the Crypto Space but Stablecoins Are Taking Over
In late 2018, Ripple created xRapid, a platform that promised increased speed and lower transaction costs, leaving top cryptos such as BTC and ETH in its dust. With Ripple, people stopped seeing cryptocurrency as an investment, but as a practical currency that they use anywhere. Two down the lane, XRP and other low priced digital currencies such as Monero and Litecoin, are not fighting for their existence from a new, emerging threat.
Stablecoins have arrived, and they are getting ready to take over the digital currency market. Stablecoins have similar behavior with traditional digital currencies, but their value is pegged to real-world assets such as gold and the USD. This means they can do pretty well in environments where their values are not driven by speculation.
These coins are increasingly becoming popular for several reasons. One of the reasons is that investors are looking to use fiat-pegged tokens to look after their wealth because of the effect of the pandemic on the global economy.
Ripple News Today – Ripple’s XRP Battles for Relevance
Due to the series of companies looking to enter the stablecoin market, as well as their practicality for daily usage, there is a serious concern that XRP could lose out. Nevertheless, Emi Yoshikawa – the Senior Director of Global Operations at Ripple – said that XRP is competing directly against existing digital currencies like stablecoins as well as the coming Central Bank Digital Currencies (CBDCs).
According to a recent report, Yoshikawa rejected suggestions that XRP and other digital currencies would struggle to maintain relevance after the boom of CBDC and stablecoin. He said that XRP is still a “bridge asset in cross-border settlement,” as opposed to a direct competitor with stablecoin frameworks.
Instead of seeing XRP as a direct competitor to central bank currencies, the Ripple executive believes that the firm would rather complement these currencies, forming an alliance in response to liquidity issues. The seamless ability of Ripple to be favored by non-KYC crypto trading platforms and traditional crypto trading platforms can also greatly benefit its role in the digital currency market.