High speculations have filled up the crypto community as Black Swan Capitalist Founder, Versan Aljarrah, has once again suggested that Ripple’s XRP may evolve into a gold-backed stablecoin, diverging from traditional USD-pegged stablecoins.
World Bank’s Classification
The debate gained momentum back in 2023 after the World Bank classified XRP as a stablecoin, sparking discussions on the future of cross-border payments and the potential for digital currencies to revolutionize traditional banking.
Former Ripple director Sean McBride’s comments added fuel to the fire, emphasizing the World Bank’s surprising classification and igniting conversations about XRP’s evolving role. He asks the community for insights, “Ripple has tons of capital. I’m super interested in your thoughts here, though. Why move away from XRP and its utility with progress being made, and many including the World Bank, already classifying XRP as a stablecoin? Thank you for all your research and insight, it’s truly appreciated.”
Ripple has historically positioned XRP as a bridge currency for swift cross-border transactions.
However, recent speculations suggest a strategic shift, considering the integration of stablecoin functionality via Automated Market Makers (AMMs). This shift raises questions about how Ripple aims to address stability demands within the banking sector, potentially issuing its stablecoin.
XRP as the Key to a Gold-Backed Stablecoin
Versan Aljarrah’s prediction, supported by research from Black Swan Capitalist’s financial analyst Vandell and Miles Franklin CEO Andy Schectman, points to XRP as an ideal for a gold-backed stablecoin.
In his X post, Aljarrah writes, “We’ve been vocal about the #WorldBank, #IMF, and World Gold Council openly discussing the need for a #gold-backed #stablecoin for central banks to #tokenize gold reserves. After much research, along with Vandell & Miles Franklin Co (Andy Schectman), we believe XRP will be the key.”
While some members of the crypto community are optimistic about XRP turning into a gold-backed stablecoin, others have expressed scepticism about the potential benefits of introducing a stablecoin on the XRP Ledger (XRPL).
All in all,
XRP’s potential transformation into a stablecoin represents a broader shift in the financial sector towards embracing digital currencies for efficiency, security, and global reach. The ongoing debate whether XRP should become a gold-backed stablecoin questions XRP’s original mission and whether the World Bank’s classification is a positive endorsement.