Ripple's XRP Could Be The Key To Gold-Backed Stablecoins Amid Potential Adoption By Global Banks ⋆ ZyCrypto

Ripple’s XRP Could Be The Key To Gold-Backed Stablecoins Amid Potential Adoption By Global Banks ⋆ ZyCrypto

17 February 2024

in XRP

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Versan Aljarrah, the founder of Black Swan Capitalist and a well-known YouTuber, recently spoke highly of XRP. In a recent post on X, Aljarrah noted that XRP could play an important role amid growing calls for gold-backed cryptocurrencies, which are price-pegged to the precious metal.

Will XRP Become A New Global Standard Backed By Gold?

There has been speculation that XRP could be backed by gold amid talks that XRP could be accepted by global banks and other financial institutions for international settlements and would be backed by gold for its fair value.

Black Swan Capitalist founder Versan Aljarrah also pointed out that there have been calls for gold-backed stablecoins from international financial institutions such as the World Bank, International Monetary Fund (IMF), and World Gold Council. According to Versan, these bodies have been pushing for gold-backed stablecoins so central banks could tokenize their gold reserves.

He indicated that Black Swan Capitalist’s financial analyst Vandell and Miles Franklin CEO Andy Schectman carried out vast research on XRP and the broader crypto market and came to the conclusion that XRP is the “key” to gold-backed stablecoins.

Aljarrah’s tweet quoted his previous tweet in July, where he spotlighted Ripple’s landmark court victory against the U.S. Securities and Exchange Commission (SEC) when Judge Analisa Torres declared that XRP is not a security on its face.

Ex-Official Shares Insights On Ripple’s Stablecoin Hype

While Ripple has amassed significant capital and made strides with XRP, the potential shift of focus to turn XRP into a stablecoin has sparked discussion in the cryptosphere. When asked whether XRP’s evolution into a stablecoin is guaranteed, Sean McBride, a former director at Ripple, answered quite plainly: “No”.

“What I think is more likely is that #XRP is classified as something entirely different. Something like a payments stablecoin,” McBride explained.

Further, he added that if XRP is to transact large-scale business-to-business (B2B) transactions across borders and institutions, it can’t be “dirt cheap.”

McBride had previously claimed that XRP’s usage presently is already considered “stablecoin-like” by the World Bank, satisfying assertions that the company doesn’t need a stablecoin asset for now.

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