Ripple CTO Warns of Price Volatility as RLUSD Faces Early Supply Risks
Ripple’s CTO, David Schwartz, warns that the launch of RippleUSD (RLUSD) may face early supply shortages and price volatility.
In a post on X, Schwartz says large speculative orders will cause short term price distortions even though RLUSD is pegged 1:1 to the US dollar.
Schwartz’s warning came after pre-market activity where bids were showing inflated RLUSD prices. One example was 1 RLUSD for 511 XRP or $1,244 based on current XRP prices. Schwartz called it speculative and said such anomalies will resolve once supply stabilizes.
“Will go back to very close to $1 once supply stabilizes. If not, something is very wrong.” Schwartz said. Don’t get FOMO.
RippleUSD to Strengthen Cross-Border Payments
RLUSD will be used in Ripple’s cross border payments network along with XRP. Ripple CEO Brad Garlinghouse announced on December 11 that NY DFS has given final approval for RLUSD.
RLUSD will be a liquidity tool for large transactions, targeted at institutional players. By pairing RLUSD with XRP, it will use XRP’s exchange availability to ensure liquidity.
RLUSD is designed for stability and risk management.
Integration with RippleNet will make payments faster and reduce de-pegging risks.
Ripple President Monica Long said RLUSD is “complementary and additive” to XRP.
Industry observers see RLUSD as a way to strengthen Ripple’s payments stack and bridge traditional finance to crypto.
Controversy Surrounds Ripple CEO Brad Garlinghouse
As RLUSD launched, Garlinghouse is being questioned about his meeting with President-elect Donald Trump where he allegedly promoted XRP and central bank digital currencies (CBDCs). Garlinghouse wouldn’t confirm the meeting but praised Trump’s crypto stance and said Trump promised to fire SEC Chairman Gary Gensler.
Gensler’s policies have stifled US based crypto innovation, Garlinghouse said. He’s hoping for regulatory changes to revive the sector. The crypto market is up after Trump’s win and people are speculating about future pro-industry policies.
Key Takeaways:
Ripple CTO David Schwartz warns of RLUSD price volatility at launch.
RLUSD will enhance liquidity alongside XRP in Ripple’s payment network.
Speculation around Garlinghouse’s alleged Trump meeting fuels debate.
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