World Bank’s XRP Classification Sparks Stablecoin Status Debate

The World Bank’s acknowledgment of Ripple’s associated coin XRP as a stablecoin has reignited debates within the cryptocurrency community regarding its status and potential role. A former director at Ripple, Sean McBride, and prominent Ripple supporter Wrath of Kahneman have both contributed to this discourse on X, sparking further discussions about XRP’s future trajectory.

World Bank XRP Classification Controversy

It is important to note that the World Bank’s position is somewhat debatable. Some analysts have reaffirmed their belief that, given XRPL’s years-long announcement of ambitions to launch a stablecoin, the World Bank may have simply categorized XRP as one.

However, one clear thing is that Ripple is gaining traction as the Central Bank of Nigeria, CBN last year acknowledged their potential to completely change the way money is used in the future.

According to the CBN’s analysis, central banks are looking at digital currencies as a result of rising expectations for the issuance of tokens subject to government regulation in the face of the growing popularity of privately owned cryptocurrencies.

Ripple’s Utility Versus Stability

McBride, while acknowledging the speculation, reaffirmed his belief in XRP’s utility and the progress being made with its adoption. He also highlighted the World Bank’s classification of XRP as a stablecoin, hinting at the possibility of it becoming a stablecoin in the future rather than a new US-pegged crypto by Ripple.

McBride’s remarks on XRP’s utility and the possibility of it evolving into a stablecoin highlight Ripple’s strategic considerations. Given that the company is focused on establishing XRP as a bridge currency for cross-border payments and settlements, it raises questions about its long-term vision and the implications of stability.

Ripple’s Decade-long Journey

The absence of a liquid stablecoin on Ripple’s XRPL over the past decade has equally prompted speculation and criticism from analysts and influencers alike. Questions surrounding Ripple’s decision-making process and its implications on XRP’s volatility in payments highlight the complexities of navigating the cryptocurrency space while striving to maintain stability and utility.

Meanwhile, in reaction to McBride’s statement, Wrath of Kahneman declared his unshakable support for XRP. He pointed out that Ripple might see enormous liquidity from a stablecoin revolution. “So many reports note XRP volatility as a drawback for payments. I don’t see it that way but wonder if a fully regulated stable could draw that liquidity to the ledger,” he said.