- David Schwartz clarifies Ripple’s strategy, stating Ethereum use does not signal a shift away from XRPL’s central role.
- Despite Ethereum support, Ripple maintains commitment to XRPL, leveraging it primarily over alternatives for enhanced efficiency and cost reduction.
In the swiftly evolving world of cryptocurrency, Ripple’s latest strategic moves have sparked a flurry of discussions within the XRP community.
Ripple’s decision to support its stablecoin, RLUSD, on the Ethereum blockchain, rather than exclusively on its native XRP Ledger (XRPL), has raised numerous eyebrows and questions about the firm’s strategic direction.
Amidst concerns over Ripple’s allegiance to XRPL, David Schwartz, has stepped forward to clarify the situation. Schwartz emphasized that the integration of RLUSD with Ethereum is purely tactical, aimed at leveraging Ethereum’s broader reach and liquidity, and does not signify a pivot away from the XRPL.
The underlying anxiety within the community stems from Ripple’s unexpected $1.4 billion pre-IPO stock buyback and its implications for the company’s financial strategy. Community members have expressed unease over the timing and motives behind the buyback.
Moreover, the community is sensitive to any shifts that might deprioritize the XRPL, which has been central to Ripple’s operations and the utility of XRP.
I'd prefer to see us using XRP on XRPL rather than RLUSD. But I think we'd all prefer anything on XRPL over anything else. Saving the cost of the centralized exchange is big.
— David "JoelKatz" Schwartz (@JoelKatz) September 4, 2024
Schwartz reassured stakeholders that the XRPL remains integral to Ripple’s core operations.
Ripple simply cannot (and absolutely doesn’t want to) unilaterally change the XRP Ledger. The blog post is Ripple saying that we see the value in bringing programmability to XRPL Mainnet (in addition to what’s already happening with the EVM Sidechain) and are making this a priority now, and we’re committed to putting out a design proposal for community review. Instead of coming out with a proposal already baked, our intent was to be transparent and show where we’ll now be focusing internal resources and priorities, do the due diligence, and come back to the Community with our thoughts.
He highlighted the benefits of transacting with XRP on the XRPL, such as avoiding centralized exchanges and reducing transaction costs, which are not only cost-effective but also align with the decentralized ethos of the cryptocurrency movement.
Seems like there’s confusion over the programmability blog post we put out yesterday, so let me clear a few points up:
Ripple simply cannot (and absolutely doesn’t want to) unilaterally change the XRP Ledger. The blog post is Ripple saying that we see the value in bringing…
— David "JoelKatz" Schwartz (@JoelKatz) September 4, 2024
Furthermore, Ripple’s exploration of Ethereum for RLUSD does not replace its commitment to the XRPL but rather complements it by broadening the scope of Ripple’s financial tools within the crypto ecosystem.
Ripple CEO Anticipates Regulatory Shifts
Brad Garlinghouse, CEO of Ripple, projects potential improvements in cryptocurrency regulation linked to changes in the leadership of the U.S. Securities and Exchange Commission (SEC). This anticipation aligns with the upcoming U.S. presidential elections.
Garlinghouse notes the possibility of new SEC leadership, which could positively affect the regulatory landscape for digital currencies. His comments emerge as the SEC has recently escalated its regulatory actions against cryptocurrency firms, including OpenSea.
Legislative Developments
Garlinghouse expresses a positive outlook fueled by advancements in cryptocurrency-related legislation, particularly the Financial Innovation and Technology for the 21st Century Act.
This act is designed to adapt financial regulations to include digital currencies more effectively. He criticizes the current approach of SEC Chairman Gary Gensler, suggesting it may be detrimental to his political affiliations.
Despite facing significant regulatory challenges, Ripple maintains its commitment to its legal strategies. Garlinghouse affirms Ripple’s position, emphasizing its adherence to the law and its role in shaping the future of financial technology.
The current price of Ripple (XRP) is approximately $0.5497 USD, reflecting a decrease of 3.47% over the past 24 hours. The day’s trading range has been between $0.5406 and $0.5601 USD.
Over the last 52 weeks, XRP has traded between $0.3911 and $0.7421 USD. The market capitalization is around $30.921 billion, with a 24-hour trading volume of approximately $1.05 billion.
