• Tue. Jul 16th, 2024

World Bank Categorizes XRP as a Stablecoin, Recommends Ex-Ripple Director

Maria Bartiromo

ByMaria Bartiromo

Feb 15, 2024

The cryptocurrency community has recently been speculating on the World Bank’s designation of Ripple’s XRP as a stablecoin. The story gained momentum following comments made by former Ripple Director Sean McBride, which alluded to XRP’s possible development into a stablecoin.

XRP’s classification as a stablecoin by the World Bank has caused controversy and prompted debate among industry watchers and XRP enthusiasts. The World Bank has not officially announced XRP’s classification, but McBride’s remarks have sparked conjecture about the digital asset’s future and its place in the larger cryptocurrency ecosystem.

XRP’s potential categorization as a stablecoin by the World Bank has generated a lot of speculation and debate. Although remarks made by former Ripple Director Sean McBride have fueled conjecture, formal validation from reliable sources is required to verify such assertions.

McBride Remarks Triggers Need for More Validation from Official Sources

Many in the cryptocurrency world speculate about the possible ramifications of XRP being categorized as a stablecoin in response to McBride’s comments, which have fueled the flames. Although XRP has consistently been recognized as a digital asset for remittances and cross-border payments, its designation as a stablecoin may indicate a change in its usefulness and market dynamics.

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An analysis on CoinGape explains that adopting XRP and its use cases in several areas, including banking, finance, and international trade, may be significantly impacted by its designation as a stablecoin. McBride’s remarks and industry analysts’ interpretations have given rise to conjecture regarding XRP’s classification, underscoring the need for additional clarification and validation from official sources.

In some quarters, the report that XRP will turn into a stablecoin has been tagged as mere speculation and urged to be taken as baseless. As of press time, CoinMarketCap data says that XRP is trading at $0.5477, recording a 2.70% increase in the last 24 hours – with an 8.68% increase in trading volume, representing $1,531,094,281. 

Wrath of Kahneman Says Stablecoin Initiative, Will Transform Ripple 

Investigation into the development has disclosed that investors and other market participants are interested in this digital asset. With a market capitalization of 29.809 Billion, XRP has become one of the most prominent cryptocurrencies, and its devoted user base and advocates are pushing for its acceptance and incorporation into other financial systems.

Ripple’s Ex director stated that Ripple sees private stablecoins as a competitive technology hence, prioritizing its role as a connecting currency. Wrath of Kahneman, a popular Ripple enthusiast and cryptocurrency influencer, has acknowledged McBride’s comments and shown his support for the company’s effort to increase XRP acceptance.

He also stated that a stablecoin initiative in Ripple will transform the company and attract huge liquidity. While talking about the XRP volatility, the Wrath of Kahneman commented that he has seen many reports that define XRP volatility as a hindrance to payment systems. He said he had never seen or considered it as such but wondered about the possibility of a well-regulated stablecoin drawing liquidity to the ledger.

Ripple’s Ex-Director Explains the Company’s Non-inclusion of Stablecoin on XRPL 

In an interview with Sean McBride, an ex-Ripple director, as reported by CoinGape, Ripple’s intention not to launch a liquid stablecoin on the XRPL system over the last ten years is linked to the company’s focus on making XRP a connecting currency between the Central Bank Digital Currencies (CBDCs), and other cryptocurrencies.

Expatiating on the use of XRP as a bridge currency, which includes RippleNet and On-Demand Liquidity (ODL), says it intends to facilitate quick, safe, and affordable cross-border transfers. McBride added that he is optimistic that Ripple will come around to augment the utility of XRP.

He also acknowledged the progress made so far in encouraging its  adoption while mentioning the World Bank classification, stating that it’s evidence of the growing acceptance of the XRP in the financial system. Analysis from the XRP community finds the World Bank’s position complicated, saying it was motivated by XRPL’s efforts to launch stablecoins for some years now.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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