Could Ripple’s XRP Become a Gold-Backed Stablecoin? Black Swan Capitalist Predictions

High speculation has filled the cryptocurrency community as Black Swan Capitalist founder Versan Aljarrah once again suggested that Ripple’s XRP could evolve away from the traditional USD-pegged stablecoin and into a gold-backed stablecoin.

World Bank Classification

The debate gained momentum again after the World Bank classified XRP as a stablecoin in 2023, sparking discussion about the future of cross-border payments and the potential for digital currencies to revolutionize traditional banking.

Comments from former Ripple executive Sean McBride added fuel to the fire, highlighting the World Bank’s surprising classification and sparking conversation about the evolving role of XRP. He asks the community for insight. “Ripple has enormous capital. But I’m very interested in your thoughts. Why the move away from XRP and its utility as progress is made, with many, including the World Bank, already classifying XRP as a stablecoin? Thank you for all your research and insight. “Thank you very much.”

Ripple has historically positioned XRP as a bridge currency for rapid cross-border transactions.

However, recent speculations suggest a strategic shift considering integrating stablecoin functionality through Automated Market Makers (AMMs). This change raises questions about how Ripple aims to address stability needs within the banking sector, potentially by issuing a stablecoin.

XRP, the core stablecoin backed by gold

Based on research by Black Swan Capitalist financial analyst Vandell and Miles Franklin CEO Andy Schectman, Versan Aljarrah’s prediction points out that XRP is an ideal gold-backed stablecoin.

Aljarrah wrote in his X post: “We have been vocal about the #WorldBank, #IMF and World Gold Council publicly discussing the need for #gold-backed #stablecoins for central banks to #tokenize their gold reserves. After much research with Vandell & Miles Franklin Co (Andy Schectman), we believe XRP will be key.”

While some members of the cryptocurrency community are optimistic about XRP turning into a gold-backed stablecoin, others have expressed skepticism about the potential benefits of introducing a stablecoin to the XRP Ledger (XRPL). I did.

generally,

XRP’s potential conversion to a stablecoin signals a broader shift in the financial sector toward embracing digital currencies for their efficiency, security, and global reach. The ongoing debate over whether XRP should become a gold-backed stablecoin calls into question XRP’s original mission and whether the World Bank’s classification is a positive endorsement.