XRP Isn’t in Competition With Stablecoins. While central bank based cryptocurrencies and Ripple’s on-demand solution may have been created with a similar objective, Yoshikawa said that the XRP token isn’t competing with them.
Just as Ripple intends to kick SWIFT out of the market, some stablecoins pose the same threat. A typical example is the digital Yuan which is currently in creation. This CBDC and others will reduce operational costs making things cheaper for financial institutions. While this might mean that they will pose a competition to Ripple, Yoshikawa is confident in its products and services.
During an interview with FXcoin, Yoshikawa said;
“There are various types of crypto assets, but I think that the role of XRP as a bridge asset in the international settlement, and is not competing with stablecoins or CBDC, but on the contrary, is complementary. We believe that various stablecoins and CBDCs will create synergy by responding to the liquidity problem by bridging independent crypto assets, XRP.”
He said that the XRP token isn’t competing with other cryptocurrencies or with central bank based currencies that are pegged to fiat money. He said that the XRP token is a bridge currency and not a stablecoin. Apart from the XRP token, Yoshikawa talked about another great product by Ripple, ODL.
The on-demand liquidity solution, which was formerly called xRapid, is currently one of the cheapest and fastest payment settlement instruments in the industry. Yoshikawa said that the ODL global payments eliminate pre-funding. This is something that regular banks still haven’t been able to do hence the high operational cost and slow speed.
- Ripple Executive Says XRP Isn’t Competing with Stablecoins
- XRP Falls Below the $0.3000 Level Again as the Entire Market Faces Recovery
Ripple XRP isn’t one of the most popular cryptocurrencies in the industry for nothing. Over the years, Ripple has sealed several deals with fintech giants across the globe. Despite all these partnerships, the XRP token is one of the most controversial tokens in the space.
Some people have accused Ripple of controlling the token because the blockchain is centralized, some have said that the token should be called a stable coin because of the negative to stable price of the token. Recently, Ripple’s senior director of global operations made it clear that the XRP token isn’t in competition with any stablecoin.
XRP Falls Below the $0.3000 Level Again as the Entire Market Faces Recovery
Ripple XRP has been struggling against the USD since the beginning of trading today. While this decline isn’t an isolated movement, the token is holding the support at $0.2900. At the time of writing, the price of the token was $0.290743. This means that it is down by 4.42% against the USD and down by 2.40% against Bitcoin BTC. The trading volume over a 24 hour period was $1,968,006,801 and the market capitalization was $13,066,755,581.
Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.