Prominent XRP figure says Ripple left conversations about XRP as a reserve currency, noting Ripple is now talking to banks about issuing stablecoins on XRPL.
Some members of the XRP community recently unearthed a statement where Ripple said it aimed to make XRP a world reserve currency. Given that the statement is six years old, prominent XRP influencer Crypto Eri challenged the promoters of the old information.
Crypto Eri argued that Ripple had already sidestepped the narrative of XRP becoming a reserve currency. She noted that Ripple has not spoken about that idea in recent years.
Moreover, she urged the community to focus on a recent statement where a Ripple executive said Ripple is talking to banks about issuing stablecoins on the XRP Ledger (XRPL).
XRP as a reserve currency (Ripple narrative) hasn’t been spoken about for years. Per David Schwartz in a recent live space, Ripple is talking to Banks & large FI’s to bring stable coins to the DEX in major currencies. Court docs also show Prisma was the North Star for Ripple to… https://t.co/QWaGmBRI94 pic.twitter.com/8e1X1eVOBk
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) September 3, 2023
Stablecoins on XRPL
Notably, Ripple’s Chief Technology Officer, David Schwartz, participated in a recent discussion on X space around the latest on the XRP landscape. The anchor inquired about the current status of Ripple Prisma, an API referenced in a legal document related to On-Demand Liquidity (ODL) payment settlement.
In response, Schwartz clarified that decentralized exchanges (DEXs) are not presently integrated into ODL. Nevertheless, he highlighted the ongoing checks to incorporate DEX services into ODL. He added that the integration will enable trading against automated market makers (AMMs).
Meanwhile, Schwartz provided further insights into Prisma’s capabilities. He stated that Prisma can use the liquidity of multiple exchanges, including DEXs. Schwartz also explained that Prisma can dissect substantial transactions into more manageable portions to optimize the utilization of liquidity.
However, Schwartz mentioned that the integration remains unrealized due to certain factors. The Ripple CTO pointed out the availability of stablecoins in US dollar or Euro as prerequisites for the practical implementation.
Schwartz noted that Ripple had neared an opportunity to integrate stablecoin functionality onto XRPL before the US regulator filed a lawsuit. He explained that the SEC case ceased advancements in the stablecoin and DEX integration within ODL.
In his words:
“We had a deal that I thought was going to close, and then that was two and a half years ago when the when the SEC filed suit against Ripple, and so that kind of torpedoed that deal.”
In response, a prominent lawyer, Bill Morgan, argued that the progress disruption represented one of the SEC lawsuit’s impacts on the border crypto community.
Surprised this is not getting more attention in the XRP community. If there was a deal with a stablecoin issuer to issue a stablecoin on the XRPL DEX and it was scuppered in late 2020 by the lawsuit it is just another example of how much damage the SEC lawsuit has done. https://t.co/B5zcPJQkVd pic.twitter.com/lZ54sJuVCy
— bill morgan (@Belisarius2020) September 2, 2023
Nonetheless, Schwartz clarified Ripple is engaging top financial institutions about launching stablecoins to make the DEX integration more practical.