BitGo CEO argues RLUSD's launch signals XRP's failure as a bridge currency, sparking debate on stablecoins versus tokens for cross-border payments and the future of Ripple.
Ripple's journey with XRP as a bridge currency has hit a snag, or so claims BitGo CEO Mike Belshe. His argument? The launch of Ripple's RLUSD stablecoin is an admission that XRP's original purpose has faltered. Let's dive into this juicy debate.
The RLUSD Argument: A Bridge Too Far for XRP?
Belshe didn't mince words at the American Banker's Digital Banking 2025 conference. He stated that Ripple's decade-long dream of XRP becoming the go-to bridge currency hasn't materialized. RLUSD, a dollar-backed stablecoin, is now seen as the potential replacement. Belshe emphasized, "USD stablecoins are just better." He criticized XRP's two-step conversion process, highlighting the efficiency and simplicity of stablecoins for cross-border transactions.
Ripple's Rebuttal: XRP and RLUSD Can Coexist
Not so fast, says Ripple. CTO David Schwartz assured everyone that XRP isn't going anywhere. Instead, it will work *with* RLUSD, handling path-finding and liquidity between non-dollar pairs. Crypto Eri, a prominent voice in the Ripple community, echoed this sentiment, emphasizing the need for more developments in the Ripple space, including spot ETFs, XRPFi, and innovative treasury strategies.
Stablecoins vs. XRP: The Great Debate
Belshe's critique centers around the efficiency of stablecoins. He envisions them becoming the "rails across the world," outpacing tokens like XRP. His argument is that stablecoins offer a simpler, more direct solution for payments. Bank of America's potential interest in launching a dollar-backed stablecoin further validates this trend.
The XRP ETF Factor
Adding another layer to this saga is the potential for an XRP spot ETF. Bloomberg analysts give it a whopping 95% approval likelihood. An XRP ETF could send the token soaring, but BlackRock's silence on the matter is notable. A fake iShares XRP-spot ETF filing even caused a pump-and-dump rally, suggesting some caution is warranted.
Legal Limbo and Price Outlook
The SEC vs. Ripple case continues to loom large. Investors are eagerly awaiting Judge Torres' ruling on the proposed settlement terms. The outcome will undoubtedly impact XRP's price trajectory. Despite the legal uncertainty, Polymarket puts the odds of a 2025 XRP-spot ETF approval at 88%.
My Two Sats
While Belshe makes a compelling case for stablecoins, I think it's premature to write off XRP entirely. The ecosystem is evolving, and the potential for XRP-related financial products is huge. Also, let's be real, the legal battle with the SEC is not helping. I think XRP and RLUSD can both find a place in the crypto world. XRP can offer utility as a bridge between less liquid currencies and RLUSD can be used for general cross border payments.
So, is RLUSD a sign of XRP's failure? Maybe. But more likely, it's a sign of the crypto landscape evolving. And who knows, maybe we'll all be tapping our phones at farmers' markets with XRP or RLUSD someday. Only time will tell!
