Ripple CTO David Schwartz Addresses Concerns Over RLUSD's Impact on XRP

One of the most anticipated launches in the crypto space is nearing as the San Francisco-based cross-border payment provider's Ripple USD (RLUSD) enters what appears to be the final stages of its research and development

Cross-border payment provider Ripple is nearing the launch of its highly anticipated stablecoin, Ripple USD (RLUSD). As mints and burns of RLUSD reach millions in value, the crypto community is abuzz with speculation on how the stablecoin will impact XRP, the native asset of the XRP Ledger (XRPL).

In the latest episode of this debate, Chief Technical Officer David Schwartz was asked to provide concrete answers on whether RLUSD will be a net positive for XRP.

Schwartz began by emphasizing XRP’s essential role in the XRPL ecosystem, highlighting its use for transaction fees and the fact that every transaction must involve XRP. He also noted XRP’s unique characteristics, such as having no counterparty or jurisdiction, which makes it immune to freezes or clawbacks and offers structural advantages like autobridging.

However, Schwartz acknowledged the potential challenges XRP could face if stablecoins outcompete it in fulfilling its intended role. If RLUSD or any other stablecoin can perform tasks better than XRP, it could lead to a decline in XRP’s importance, regardless of RLUSD's performance.

The CTO also expressed his opinion that raising fees to increase XRP’s scarcity is not a priority. He believes that the XRPL should primarily serve its users, rather than those who hold XRP for passive gains. However, he noted that the introduction of smart contracts could lead to increased transaction fees.

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