Lawyer Specializing in Cryptocurrencies Denies Rumors Concerning RLUSD's Utilization in Place of XRP
In a recent post shared by Ripple's lawyer, Bill Morgan, on Tuesday, misconceptions about the use of Ripple's stablecoin, RLUSD, in cross-border payments were addressed. Morgan's post came amidst growing speculation about RLUSD's role in Ripple's third-party partnerships compared to XRP.
Morgan emphasized that Ripple had originally clarified that the majority of Ripple payments involve the use of XRP, not RLUSD. He further reaffirmed the superiority of XRP as a bridge currency for fast enough payment transactions, outperforming any fiat-based stablecoin in terms of speed.
The post also highlighted that RLUSD serves limited purposes, such as in USD-specific markets or where regulatory frameworks mandate stablecoin use. Slower transactions, higher fees when issued on Ethereum, and limited global liquidity due to its USD peg are potential downsides posed by RLUSD in certain scenarios.
Brad Garlinghouse, the person from Ripple who significantly reduced the use of RLUSD in Ripple's external payments, also agreed with Morgan's declarations. Ripple's CTO, David Schwartz, echoed this sentiment, confirming XRP's unmatched role in cross-border payments.
The XRP community has shown support for Morgan's clarifications, acknowledging XRP's superiority in the realm of fast, efficient cross-border transactions. Morgan, however, was careful to note that he is not in the best position to issue such confirmations.
It's important to note that the post by Morgan does not suggest any imminent shift in the role of RLUSD in Ripple's payment system. Nor does it address the performance of XRP or RLUSD in the broader cryptocurrency market.
Moreover, the use of RLUSD in real-time would trigger complexities for companies like Thunes that prioritize instant payment in crypto transactions. The complexities arise due to the need for real-time conversion of RLUSD to XRP or another cryptocurrency, which could potentially slow down the transaction speed.
Ripple's integration with the payments network of 4 billion accounts underscores its commitment to providing fast, efficient, and reliable cross-border payment solutions. Morgan's post serves as a reminder that XRP remains at the heart of Ripple's payment ecosystem, offering a superior solution to traditional stablecoins for fast enough cross-border transactions.
