Ripple’s Stablecoin to Enhance Global Finance and Boost XRP Utility

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Renowned economist Carlo R.W. De Meijer, MIFSA owner and independent economist, recently praised Ripple’s upcoming stablecoin launch in a blog post published by Finextra. He sees it as a big deal for both crypto and traditional finance and thinks it could bring them closer together. Currently, XRP trades at $0.51603, but its price might change when the stablecoin launches.

How Ripple’s Stablecoin Works

Ripple’s move into the booming stablecoin market, expected to grow to $2.8 trillion by 2028, is significant. Last month, the company announced the launch of a stablecoin pegged 1:1 to the US dollar. It aims for transparency and reliability by backing it with USD deposits, government bonds, and commercial paper. Regular audits ensure it meets global regulations, building trust with institutional and government clients. This should make people feel confident using it.

Why Does It Matter for Ripple?

Ripple’s stablecoin could make Ripple even better, according to De Meijer. He said this because it will give Ripple users more options. Even though Ripple is making this new stablecoin, it doesn’t mean they’re getting rid of XRP, their other digital currency. XRP is still important because it’s fast for making payments. The stablecoin will work alongside XRP to make Ripple more useful.

The Benefits for Banks and Institutions

Moreover, De Meijer thinks Ripple’s stablecoin could be helpful for big banks and companies. They might want to use it because it’s like regular money but faster to send online. Plus, Ripple’s stablecoin will follow strict rules, which could make banks and institutions feel safer using it.

The stablecoin will be launched on both the XRP Ledger (XRPL) and Ethereum blockchains, with plans to expand to additional blockchains and DeFi protocols in the future. This dual launch strategy seeks to enhance adoption and interoperability across diverse blockchain ecosystems.

Ripple’s Global Strategy and Current Outlook

Ripple’s new stablecoin idea fits well with its bigger goal of strengthening its digital money system XRPL. The stablecoin can help bring in more people, make money move faster online, and create new ways to use money. Ripple also hopes it will make its partnerships stronger and make it easier to use its fast payment system called On-Demand Liquidity (ODL)

Despite SEC legal challenges, Ripple hopes to launch its stablecoin by the end of the year. De Meijer hopes the stablecoin will revolutionize cross-border payments, enable new use cases beyond remittances and micropayments, and bridge traditional banking with DeFi.

In short, the economist says Ripple’s new stablecoin won’t make XRP less important. Instead, it’s because people want more stablecoins like XRP. He thinks both XRP and the stablecoin will be useful together. XRP is fast, while the stablecoin is steady.