Some members of the XRP community recently took notice of an old statement in which Ripple stated that it was committed to making XRP the world's reserve currency. Considering that the claim is now six years old, a well-known influencer in the XRP community, Crypto Eri, has put forward his own version.
Crypto Eri claims that Ripple has already avoided the idea that XRP will become a reserve currency. She noted that Ripple has not spoken about this idea in recent years.
Moreover, she urged the community to pay attention to the recent statement in which David Schwartz reported that Ripple is in negotiations with banks to issue stablecoins on the XRP Ledger (XRPL). She writes:
XRP as a reserve currency (Ripple story) has not been talked about for many years. According to David Schwartz in a recent livestream, Ripple is in talks with banks and large financial institutions to bring stablecoins in major currencies to the DEX. Court documents also show that Prisma has been Ripple's North Star in achieving unsubsidized natural liquidity. Later in the same livestream, David said that Prisma can leverage DEX liquidity by aggregating smarter liquidity, AND there is a "major effort underway to integrate DEX use into ODL." This is why it is very important to stay informed. The 2017 Ripple Insight blog is out of date. If you want to know more about this topic, watch @MrFreshTime's latest video.
Stablecoins on XRPL
Notably, Ripple CTO David Schwartz took part in a recent discussion in X space surrounding the latest developments in the world of XRP. The presenter inquired about the current status of Ripple Prisma, an API referenced in a legal document related to the settlement of on-demand liquidity (ODL) payments.
In response, Schwartz clarified that decentralized exchanges (DEXs) are not currently integrated into ODL. However, he highlighted ongoing developments to incorporate DEX services into ODL. He added that the integration will enable trading against automated market makers (AMMs).
In the meantime, Schwartz provided additional information about Prisma's capabilities. He stated that Prisma can leverage the liquidity of multiple exchanges, including DEXs. Schwartz also explained that Prisma can break down significant transactions into more manageable chunks to optimize the use of liquidity.
However, Schwartz noted that integration remains unrealized due to a number of factors. Ripple's CTO pointed to the availability of stablecoins in US dollars or euros as a prerequisite for practical implementation.
Schwartz noted that Ripple was closer to being able to integrate stablecoin functionality into XRPL before the US regulator filed the lawsuit. He explained that the SEC case stopped progress in integrating stablecoins and DEXs into ODL.
According to him:
“We had a deal that I thought was going to close, and that was two and a half years ago when the SEC filed a lawsuit against Ripple and it kind of derailed that deal.”
In response, prominent lawyer Bill Morgan said that the disruption to progress represents one of the consequences of the SEC's lawsuit for the border crypto community.
I'm surprised this doesn't get more attention in the XRP community. If a deal was struck with a stablecoin issuer to issue a stablecoin on the XRPL DEX, but it fell apart in late 2020 due to a lawsuit, then this is just another example of the damage the SEC lawsuit has caused.
— Bill Morgan (@Belisarius2020) September 2, 2023
However, Schwartz explained that Ripple is engaging leading financial institutions to launch stablecoins to make DEX integration more practical.
