As Ripple faces a lawsuit from the U.S. Securities and Exchange Commission and mass delistings from various exchanges, some may wonder if a complementary business plan is viable.
One option is for the firm to shift its focus toward stablecoins and central bank digital currencies (CBDCs) as XRP faces scrutiny.
Ripple Seems Interested In CBDCs
Ripple has expressed past interest in CBDCs. In August 2020, Emi Yoshikawa, Senior Director of Global Operations at Ripple, stated that XRP “is not competing with stablecoins” or CBDCs. She added that XRP is complementary to stablecoins and can assist with settlement.
Later, in November, Ripple CEO Brad Garlinghouse acknowledged that a number of central banks are examining XRP Ledger “as open-source technology to issue stablecoins.” He noted that although Ripple was not directly involved in those activities, the firm was “trying to be helpful” to those banks.
Related to both of these statements, Ripple reasserted this January that it aims to provide a neutral bridge asset for CBDCs such as China’s upcoming digital yuan.
However, these plans largely depend on XRP as a bridge currency, meaning that this strategy is unlikely to displace XRP itself.