Chief Technology Officer (CTO) of Ripple David Schwartz commented on the real value of the XRP Ledger (XRPL) and the direction of the network. He also said that XRPL does not trigger a rise in the price of XRP, but noted that it makes the token more valuable due to its role on the network.
Ripple CTO explains the usefulness of XRP Ledger and its impact on XRP price
In a MessageRipple’s CTO said the XRP Ledger was designed to provide a fast, cheap and reliable native token, DEX and payment system for people who needed these features. This occurred as he noted that the XRPL was not designed to increase the price of XRP or cause it to “go up”.
However, the technical director of Ripple admitted that greater adoption and usage of the XRP Ledger would add value to XRP. He explained that this would happen due to the token’s privileged position on the network. XRP would be the only unrequited network asset that anyone can hold. He added that the token is “jurisdictionless” and favored by autobridges.
THE The CTO of Ripple had already declared that XRP would remain the bridge currency of the XRP Ledger, despite the emergence of the RLUSD stablecoin. He noted that there were multiple stablecoins, which prevented any one of them from serving as a bridge currency. Schwartz also indicated that XRP is more dominant than these stablecoins because it is more generally accepted around the world.
Meanwhile, the Ripple CTO also addressed those who were concerned about the short and medium term. XRP Price Action. He said he was not convinced that utility was significant beyond a stable and reliable network ensuring that XRP remained rare, fungible, censorship-resistant and easy to maintain and transfer.
Ripple adds new utility for XRPL and RLUSD
In a press releaseRipple announced a collaboration with Mastercard, WebBank and Gemini to explore the use of RLUSD on the XRP Ledger. The crypto company said the initiative aims to enable RLUSD to facilitate blockchain-based settlement processes between Mastercard and WebBank, which issued the Gemini Credit Card. The crypto exchange has launched several credit cards, including one for XRP.
Notably, Ripple revealed that this initiative would begin with the Gemini XRP card, a move that pro-XRP advocate Bill Morgan believes this could boost the adoption of XRP. In a Messagehe noted that the number of XRP transactions has increased from the pre-issuance baseline since Ripple first issued RLUSD. He also referenced a community member’s view that Ripple’s new initiative could increase XRP’s trading volume once RLUSD settlement goes live.
At the time of writing, the price of XRP is trading at around $2.34, up more than 4% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Peakpx, chart from Tradingview.com
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