Understanding the Difference: Why Ripple Needs Both XRP and RLUSD

The recent launch of the RLUSD stablecoin issued by Ripple has sparked lively debate within the XRP community on the X platform (previously known as Twitter). A segment of users expresses concern that RLUSD could overshadow the role of XRP, particularly in core areas such as cross-border payments and liquidity provision. Community Concerns: Is RLUSD "Knocking Out" the Role of XRP? Some community members believe that Ripple is intentionally narrowing the role of XRP, turning it into a token used solely for transaction fees, while RLUSD will take on the rest. However, many others have spoken out to defend the position of XRP, emphasizing that XRP is not just a transaction fee token like ETH on Ethereum, but also serves as a core liquidity tool on the XRP Ledger (XRPL). In fact, the debate became quite heated with many harsh words – which is not surprising in discussions on social media X. What Did David Schwartz – CTO of Ripple Say? In light of these debates, Mr. David Schwartz – Chief Technology Officer of Ripple – has been vocal since last year, affirming the "irreplaceable" role of XRP in the XRPL ecosystem. He emphasized that XRP is the only native asset used to pay transaction fees on the XRPL. Additionally, every account on the XRPL is required to maintain a minimum reserve of XRP, which shows that XRP is the infrastructure platform of the network. Distinguishing the Roles Between XRP and RLUSD in Ripple's Strategy RLUSD is a stablecoin issued by Ripple, fully backed by cash USD, government bonds, and equivalent assets. This stablecoin is currently issued on both blockchain platforms XRPL and Ethereum, aiming to provide a stable, transparent, and legally compliant digital asset to facilitate real-time global payments and support seamless conversion between fiat and cryptocurrency. RLUSD is not intended to replace XRP, but rather to serve as a complement. With its price stability, RLUSD is well-suited to the trading needs of institutions and businesses – entities that require certainty in asset value. According to statistics, more than 95% of current RLUSD transactions are taking place on the XRPL network. Meanwhile, XRP remains central to the XRPL ecosystem, standing out with its liquidity bridging function between different assets through the auto-bridging mechanism – a feature that no stablecoin can replace. Furthermore, unlike stablecoins, XRP is an asset without an issuer or legal restrictions, making it impossible to freeze or recall – an important characteristic in the world of digital assets. XRP is Still Showing Strong Vitality Despite concerns from the community, XRP is still making positive strides. As of now, the price of XRP has reached the milestone of 2.30 USD, an impressive growth of 30% over the past 30 days – indicating that investor confidence in this coin remains strong.