The voices of the major XRP community are opposed to concerns that Ripple Stablecoin RLUSD will obscur XRP utilities.
Instead, RLUSD claims to strengthen XRP’s role within the XRP ledger (XRPL) ecosystem.
XRP still dominates pathfinding
According to In the analysis shared by the “All Things XRP” account, XRP remains at the heart of XRPL’s transaction routing due to its status as a native bridge asset. The network’s path funding algorithm is automatically defaulted to XRP when identifying the most efficient route to cross currency.
This gives XRP a unique advantage over newly introduced assets, including RLUSD. XRP continues to offer faster execution, reduced costs and greater liquidity than most stubcoins match.
RLUSD complements, not conflicts
RLUSD Stablecoin aims to bring price stability to the XRP ledger, particularly for institutional settlements and financial operations. Rather than competing with XRP, RLUSD extends the capabilities of the network by addressing XRP’s needs as an unstable asset.
By introducing RLUSD, Ripple is expanding its support ecosystem, rather than replacing XRP. As agencies adopt RLUSD in certain use cases, activities in XRPL may enhance XRP liquidity and use by increasing XRP liquidity and usage.
Despite the talk of the adoption of RLUSD, “All Things XRP” highlighted that XRP remains dominant in key areas: instant cross-border payments, on-demand liquidity (ODL) services, and as a bridge asset for multi-currency trading.
The message is that RLUSD is not a threat, it is a value-added. Integrating native Stablecoins like RLUSD strengthens the XRPL ecosystem and further strengthens the importance of XRP.
“All Things XRP” summed it up by stating that people betting on XRP in light of this development are in effect betting on the design of the entire ledger.
Ripple CTO for XRP and RLUSD utilities
Previously Ripple CTO David Schwartz I felt relieved The XRP community says that XRP is essential to XRP.
While RLUSD may serve certain applications such as payment settlements, Schwartz has confirmed that only XRP can pay XRPL transaction fees. Schwartz has made it clear that RLUSD does not replace core functions in XRP, while acknowledging that Schwartz could reduce XRP utilities.
He explained that volatile assets like XRP are important for some defi use cases. At the same time, Stablecoins play an important role for others, such as pricing, trading, and storing funds.
Essentially, RLUSD extends use cases without reducing the central functionality of XRP as a bridge asset.
Interestingly, community members suggest increasing XRPL fees to increase the rarity of XRP. Schwartz opposed the idea of using artificial shortages as a value strategy. He argued that XRPL should prioritize utilities over speculation, and noted that such decisions require broad consensus.
Ripple CEO’s view
In particular, Ripple CEO Brad Garlinghouse reiterated this sentiment. He described RLUSD as a complementary tool that increases liquidity and improves access without compromising Ripple’s continued commitment to XRP growth.
