XRP Ledger Stablecoin Proposal
Recently, Ripple Chief Technology Officer David Schwartz published a blog post with his ideas on “the future of the XRP ledger,” which includes improvements on the consensus, performance and resource consumption, and features. It is in this last category that he proposed “an XRP-collateralized stablecoin” to be added to the XRP Ledger, and a scheme for it, meaning that Ripple would back the coin with the equivalent amount of value in XRP. “The key distinguishing property of this proposal is that the stablecoin is always redeemable for XRP on the ledger from the collateral pool,” he said. “So, for example, if you hold one unit of a USD stablecoin, you can make on-ledger payments at any time just as if you held USD1 worth of XRP.” In this video, published on October 9, 2019, Schwartz shares more details about his idea.