World Bank Recognizes XRP As Stablecoin, Says Ex-Ripple Director
Highlights
- Former Ripple Director Sean McBride recently hinted at XRP's evolution into a stablecoin.
- The speculation stems from World Bank's recognition of XRP as a stablecoin.
- Meanwhile, crypto influencers also believe that Ripple isn't too focused on the stablecoin business as of now.
Ripple’s XRP is in the news again for the stablecoin frenzy encompassing XRP Ledger (XRPL) for several years now. Sean McBride, a former director at Ripple, engaged in a discussion sparked by a tweet from a prominent Ripple supporter known as Wrath of Kahneman. The tweets revolved around the potential issuance of a stablecoin by Ripple and its implications for XRP’s role within the ecosystem.
Will XRP Become A Stablecoin?
McBride, while acknowledging the speculation, reaffirmed his belief in XRP’s utility and the progress being made with its adoption. Furthermore, he highlighted the World Bank’s classification of XRP as a stablecoin, hinting at the possibility of it becoming a stablecoin in the future rather than a new US-pegged crypto by Ripple.
The World Bank’s recognition of Ripple’s native crypto as a stablecoin underscores its growing acceptance and utility within the global financial landscape. This acknowledgment provides a significant validation of Ripple’s efforts to position XRP as a reliable bridge currency for cross-border payments and settlements.
However, it is to be noted that the World Bank’s stance is a bit controversial. Analysts have reiterated that the World Bank might have listed XRP as a stablecoin since the XRPL has announced plans to roll out a stablecoin for years. In addition, the speculations around the Ripple-backed crypto transforming into a stablecoin have been thought to be baseless.
On the other hand, Wrath of Kahneman expressed his unwavering support for XRP following McBride’s response. He noted that a stablecoin revolution for Ripple could bring in massive liquidity. He stated, “So many reports note XRP volatility as a drawback for payments. I don’t see it that way but wonder if a fully regulated stable could draw that liquidity to the ledger.”
Also Read: Is Pro-XRP Lawyer John Deaton Running Against Elizabeth Warren In Senate Race?
Why Hasn’t Ripple Rolled Out A Stablecoin Yet?
However, the discussion also brought to light questions surrounding Ripple’s decision not to introduce a liquid stablecoin on the XRPL over the past decade. Speculations from crypto influencer Mr. Huber suggested that Ripple’s focus on establishing XRP as a bridge currency between Central Bank Digital Currencies (CBDCs) may have influenced this decision.
In addition, He emphasized that Ripple views private stablecoins as competing technologies, thus prioritizing its native token’s role as a bridge currency. While the debate continues regarding Ripple’s strategic direction, McBride’s defense of XRP’s utility and the World Bank’s recognition of its stability serve as compelling factors in the ongoing discourse.
Also Read: XRP Whale’s 47 Mln Selloff Sparks Speculations As Price Jumps Past $0.55
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