Ripple CTO appreciated XRP coin’s role in global payment services and predicted that XRP may achieve the role of global reserve currency.
XRP is a popular Proof-of-stake (PoS) consensus-based crypto token that runs on the XRP Leger (XRPL). Ripple Labs is the backend developer company behind XRPL. Ripple provides global payment services with the help of XRP coin. Since Dec 2020, Ripple Labs has been in a legal conflict with the United States Securities and Exchange Commission (SEC) over the Ripple’s business model & the nature of XRP coin.
On 4 Sep 2023, During a Twitter space discussion, Ripple CTO David Schwartz talked about a scenario in which XRP has a better level of ability to replace the US dollar. That means XRP coin has a better potential to become a global reserve currency in the future.
A crypto enthusiast noticed Ripple’s CTO’s statement and said that he also thinks similarly. According to this XRP supporter, if it happens then it will turn XRP investors into millionaires.
A few people raised questions about the trade price of the XRP coin and said that the XRP coin is not stable like the US dollar, so people can manipulate it via the pump & dump techniques. In short, some people don’t think that XRP has any potential to become a global reserve currency with volatile values.
XRP proponent responded and said that XRP is not a speculative asset, but instead a tool for the institutions & it will not be easy for people to manipulate XRP against institutions.
Ripple vs SEC
Since Dec 2020, Ripple & the SEC body have been fighting against each other with facts & claims but so far the SEC body failed to provide any big negative points against Ripple.
According to the SEC’s claims, Ripple controls the XRP coin but Ripple succeeded in proving that Ripple has no control over the XRP coin & its trade price.
Before the XRP lawsuit, Coinbase & some other companies were exploring the use of XRP coin in their global payment services but after the SEC’s enforcement action on Ripple they distanced themself from XRP coin. This fact was noticed by a US based crypto attorney John Deaton who said that it showed that XRP & Ripple are independent from each other & every company is free to use XRP without any need for Ripple’s consent.