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HomeNewsDavid Schwartz's Insights: XRP vs. Stablecoin in Ripple's ODL Landscape

David Schwartz’s Insights: XRP vs. Stablecoin in Ripple’s ODL Landscape

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  • Some doubt XRP’s suitability compared to the stablecoin, considering factors like transaction duration and liquidity.
  • Ripple prioritizes XRP adoption for its superior user experience and economic benefits, alongside liquidity considerations.

Ripple’s upcoming stablecoin has led to discussions about its potential impact on the use of XRP in Ripple’s On-Demand Liquidity (ODL) transactions.

Concerns have arisen among some members of the XRP community that the stablecoin could replace XRP as the preferred bridge currency for cross-border payments.

David Schwartz, has tackled these concerns head-on, highlighting the crucial need to advocate for payment solutions that seamlessly settle transactions using XRP.

He underscored Ripple’s primary objective, which is to eliminate any obstacles hindering the utilization of XRP in situations where it presents the most efficient resolution.

Schwartz emphasized the counterproductive nature of endorsing a payment method less effective than XRP for settlement, particularly given that half of ODL transactions presently rely on XRP.

However, there are still concerns among some community members about when XRP would be the optimal choice for settlement compared to the stablecoin. 

Schwartz noted that the appropriateness of XRP compared to the stablecoin hinges on several factors, including the duration for which a bridge asset is retained during transactions. 

Factors such as liquidity and the accessibility of on/off ramps could sway the decision between the two assets, particularly in instances where the bridge asset isn’t held for an extended period.

Ripple seeks to encourage the usage of XRP in situations where it offers optimal user experience and economic advantages, while also taking into account aspects such as liquidity and transaction duration.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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