XRP community figure Eri says Ripple is not leaving XRP for global payments, citing strong client demand for stablecoins as reason for inclusion of USDT and USDC in Liquidity Hub.
Crypto Eri, a prominent influencer in the XRP community, has clarified the growing view about Ripple ditching XRP in its product offering to businesses. In a recent tweet, the influencer proclaimed that Ripple was not abandoning XRP.
Notably, Crypto Eri came to her conclusion based on certain factors, including Ripple’s substantial XRP holdings.
Ripple isn't abandoning #XRP, they own billions. It's used as a "strategic weapon" (David Quote/@stedas Oct18'18). To become an Amazon one must expand, giving clients what they want (Stablecoins etc).
👉Surprise Ripple DEV interview with insight into #ETH ecosystem expansion is… pic.twitter.com/Pv7g8idILh
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) September 21, 2023
Why Ripple Won’t Ditch XRP
The first factor she highlighted was that Ripple itself is a large holder of XRP. Given that the payment firm owns XRP in billions, it may not be logical that it abandons XRP for other cryptocurrencies for cross-border payment services.
Furthermore, Crypto Eri highlighted a past statement from Ripple’s Chief Technology Officer, David Schwartz, where he reportedly said Ripple’s XRP holding serves as a strategic weapon.
Notably, the concerns that Ripple was deserting XRP intensified following the firm’s decision to add stablecoins to its Liquidity Hub product.
Last week, The Crypto Basic reported that Ripple expanded its Liquidity Hub service to Australia and Brazil with Circle USD (USDC) and Tether USD (USDT). XRP was not included in the expansion bid.
The development particularly sparked reactions given that XRP’s regulatory status had become clear in the July court ruling.
Meanwhile, Eri noted that Ripple’s decision to use stablecoin USDT and USDC rather than XRP was not wrong. According to her, Ripple was merely fulfilling the wants of its client base.
“To become an Amazon, one must expand, giving clients what they want (stablecoins, etc.),” the pro-XRP analyst remarked.
Moreover, in a previous statement, Crypto Eri highlighted the significant place stablecoins have occupied within the last two years in payment processing. Quoting data from Bloomberg, she noted that stablecoin payments trumped Mastercard in volume in 2022.
In particular, Bloomberg revealed that stablecoins processed above $6.87 trillion, while Mastercard saw $6.57 trillion. Crypto Eri resolved that Ripple added stablecoins to its Liquidity Hub to tap their global market appeal.
Other Ripple products, such as On-Demand Liquidity (ODL), use XRP to facilitate intercontinental payments. The Crypto Basic reported yesterday that one of Ripple’s partners processed 1,700% more transaction volume using ODL.