Some in the cryptocurrency space have wondered if the appearance of the new big bank issued stablecoins will make cryptocurrencies disappear. Ripple has the ambition to create a new worldwide payment system.
But detractors wonder if the prevalence of stablecoins will solve the same problem XRP is meant to solve. A popular Twitter cryptocurrency trader and enthusiast known as The Crypto Dog asked what does Ripple’s XRP have over a coin like JPM, the crypto project of JP Morgan.
Not hating on this tweet, just genuinely curious:
Why would any bank use a volatile currency like $XRP over a “bank approved” stablecoin like JPM coin?
— The Crypto Dog? (@TheCryptoDog) April 20, 2019
He went on to ask if Ripple’s future could be in danger.
Follow up question: How do you wind down a 14 billion dollar market cap once it becomes clear to the leadership that the original plan will never work out as intended.
You can either
A) continue the charade a la Theranos
or
B) ???
Honest question, not hating, trolling or FUD
— The Crypto Dog? (@TheCryptoDog) April 20, 2019
Imperator Emhyr, a Twitter user who says Ripple is his main focus responded.
This has been answered so many times it’s not funny.
Bank stable coins are only for use within said banks network, no bank will trust another bank issued coin.#XRP is a bridge asset; XRP will bridge any bank issued assets together.
What volatility?
XRP settles in <4 seconds. https://t.co/SeXiCODIFB— ⚡Imperator Emhyr?? (@XRP_Var_Emreis) April 20, 2019
Ripple’s use as a bridge asset from cryptocurrency to the traditional financial sector is what could make XRP a useful tool and valuable asset to hold. One of the most important features of Ripple’s XRP is the speed in which transactions are confirmed and settled. The speed makes volatility a non-issue according to Ripple.
Asheesh Birla, a top innovator at Ripple recently participated in a live-streamed chat with Ripple’s Senior Director of Product, Ginger Baker. During the session, Birla broke down Ripple’s recent expansion and spoke about why Ripple can overcome some of the biggest problems in the immature cryptocurrency market. Birla, the Senior Vice President of Product explained Ripple’s powers perfectly.
“XRP has an advantage in that it was built specifically for payments and so it settles in a matter of seconds. So volatility…not an issue when using XRP for cross-border payments [as] the cost of sending with XRP is just a fraction of a few pennies.”
Ripple has its share of critics, but if they can complete their mission, XRP will be a valuable financial tool. They’ve laid down the groundwork, and now they need to actually implement the plans.
