The recent launch of the RLUSD stablecoin issued by Ripple has sparked lively debates within the XRP community on platform X (formerly Twitter). A segment of users expressed concerns that RLUSD could overshadow XRP's role, especially in core areas such as cross-border payments and liquidity provision.

Community Concerns: Is RLUSD 'Diminishing' XRP's Role?

Some community members believe that Ripple is intentionally downplaying XRP's role, turning it into a token used solely for transaction fees, while RLUSD will take on the rest.

However, many others have spoken out in defense of XRP's position, emphasizing that XRP is not just a transaction fee token like ETH on Ethereum, but also serves as a core liquidity tool on the XRP Ledger (XRPL).

In fact, the debate became quite heated with many harsh words – which is not surprising in discussions on social media X.

What Does David Schwartz – CTO of Ripple – Say?

In light of these debates, David Schwartz – CTO of Ripple – has previously stated last year, affirming the 'irreplaceable' role of XRP in the XRPL ecosystem.

He emphasized that XRP is the only native asset used to pay transaction fees on the XRPL. Additionally, all accounts on the XRPL are required to hold a minimum reserve of XRP, indicating that XRP is indeed the infrastructure backbone of the network.

Distinguishing the Roles Between XRP and RLUSD in Ripple's Strategy

RLUSD is a stablecoin issued by Ripple, fully backed by cash USD, government bonds, and equivalent assets. This stablecoin is currently issued on both blockchain platforms XRPL and Ethereum, aiming to provide a stable, transparent, and legally compliant digital asset for real-time global payments and seamless conversion between fiat and cryptocurrency.

RLUSD is not intended to replace XRP, but rather to complement it. With price stability, RLUSD is well-suited to the trading needs of institutions and businesses – entities that require certainty in asset value. According to statistics, over 95% of current RLUSD transactions are taking place on the XRPL network itself.

Meanwhile, XRP remains central to the XRPL ecosystem, standing out with its function as a liquidity bridge between different assets through the auto-bridging mechanism – a feature that no stablecoin can replace. Moreover, unlike stablecoins, XRP is an asset without an issuing partner or legal limitations, thus cannot be frozen or recalled – an important characteristic in the world of digital assets.

XRP Still Demonstrates Strong Vitality

Despite community concerns, XRP is still making positive strides. As of now, the price of XRP has reached $2.30, an impressive growth of 30% in the past 30 days – indicating that investor confidence in this coin remains very high.