In a recent tweet, lead XRP Ledger and Xumm Wallet developer has stated that Ripple’s native XRP could become a stablecoin coin if below these two conditions are met.
Wietse Wind, the lead developer, stated that XRP could become a stablecoin if, one, the goods and services offered are valued in fixed XRP value. For that, all the vendors and employees worldwide must decide to do so, which Wind stated ‘Never going to happen‘.
I guess the only hypothetical way would be if stores and people start pricing goods and services in fixed XRP value, which would only work if their vendors, employees, everyone would do that as well. Never going to happen.
— WietseWind – 🛠 XUMM @ XRPL Labs (@WietseWind) December 29, 2022
Further, Wind wrote, the condition could only be met if all XRP on-and offramps collectively agreed to offer XRP at a fixed fiat equivalent. The developer noted that will also never happen as there are a lot of exchanges and Dex.
Notably, Wind’s basic thesis is that 1 XRP is equal to 1 XRP as the developer explains that the XRP’s fiat or for ex value only comes into the equation when the coin interacts with the world outside XRP Network. It effectively means that, if used within the XRP Network, the coin’s fiat value is not relevant.
He summed up that XRP’s fiat value is determined by the supply and demand equivalent and it is unstable because the value offered by people is also unstable.
Further, currently trading at $0.33, XRP is down 1.9% in the day and 3.5% over the week. XRP’s current price level is the lowest since November 9th. Over the month XRP lost value by 15%.
Credit: Source link
