Ripple’s choice not to add XRP to the liquidity pool has swayed the community. Is Ripple afraid of SEC interference or trying to distract the agency’s attention from the native token?
Recently, Ripple has expanded its Liquidity Hub program to make room for stablecoins USDT and USDC products, catering primarily to institutional investors. However, it was caught in endless rumors soon after this was announced. XRP fans were disappointed as XRP was not on the list, despite a win in the US court ruling marking XRP’s classification as a digital asset rather than a security. Experts have analyzed the scenario, and here are the possible reasons why XRP is missing in Ripple’s flagship venture.
Crypto Eri Dispels Notion of XRP Neglect
Looking at the market sentiments, Crypto Eri, a prominent figure in the XRP community, refutes claims of Ripple sidelining XRP for global payments. She projected a strong client demand for stablecoins like USDT and USDC, which is the driving force behind their inclusion in the Liquidity Hub.
Moreover, Crypto Eri underscores the growing influence of stablecoins in payment processing. According to a Bloomberg report, stablecoin payments surpassed those made through Mastercard in 2022, with stablecoins processing over $6.87 trillion, compared to Mastercard’s $6.57 trillion. XRP has everything yet needs to play the underdog as the market is still crippling with SEC’s aggressive outlook on crypto assets.
Also Read : Ripple News: Big Banks Are Shifting to XRP; Could It Really Rival Bitcoin?
Legal Outlook: Grey Areas Remain
On the flip side, as we all know, there is a legal process that can’t be ignored, as Ripple has only won half the battle. Bill Morgan, a leading advocate for XRP, commented on the legal side surrounding Ripple’s interactions with XRP. While it’s clear that XRP is not a security, uncertainties persist regarding how Ripple employs the digital asset within its global operations. To safeguard customer interest from SEC’s scrutiny, Ripple is refraining from adding XRP at this time.
What Ripple has to say
Given Ripple’s significant holdings of XRP, replacing it with other cryptocurrencies for cross-border payments would be impractical. Additionally, Ripple’s Chief Technology Officer, David Schwartz, emphasizes the strategic importance of XRP within Ripple’s ecosystem.
The SEC dispute has affected XRP’s liquidity in the US market. However, Ripple’s CEO hints that after the legal proceedings conclude, there may be potential to incorporate XRP into the Liquidity Hub, contingent on ample liquidity in the US market.
