Versan Aljarrah, renowned as the founder of Black Swan Capitalist and a prominent figure on YouTube, has expressed notable optimism about XRP’s potential. In a recent statement shared on X platform, Aljarrah emphasized the significance of XRP in response to the increasing demand for gold-backed cryptocurrencies. These digital assets, linked in value to the price of gold, have garnered attention in financial circles due to their perceived stability and intrinsic value. Aljarrah’s endorsement of XRP highlights its viability in addressing emerging trends and market demands within the cryptocurrency landscape.
Will XRP Become A New Global Standard Backed By Gold?
There have been discussions circulating about the potential for XRP to be backed by gold, especially considering its potential adoption by global banks and financial institutions for cross-border settlements. This concept stems from the idea that backing XRP with gold could ensure its stability and fair valuation in international transactions.
Versan Aljarrah, the founder of Black Swan Capitalist, shed light on this speculation, noting that prominent international financial bodies like the World Bank, IMF, and World Gold Council have been advocating for gold-backed stablecoins. These organizations envision a scenario where central banks tokenize their gold reserves, facilitating smoother transactions and enhancing the stability of digital assets.
Aljarrah highlighted the findings of Black Swan Capitalist’s financial analyst Vandell and Miles Franklin CEO Andy Schectman, who conducted extensive research on XRP and the broader cryptocurrency market. Their analysis led them to conclude that XRP holds a pivotal role in the development of gold-backed stablecoins. Aljarrah’s tweet referenced a previous post from July, where he underscored Ripple’s significant legal victory against the SEC, reinforcing the notion that XRP’s regulatory status has cleared hurdles, further supporting its potential as a foundational asset for innovative financial instruments.
Ex-Official Shares Insights On Ripple’s Stablecoin Hype
In recent discussions within the cryptocurrency community, there has been speculation about Ripple’s potential shift in focus towards transforming XRP into a stablecoin. Despite Ripple’s considerable capital and progress with XRP, this prospect has prompted a dialogue about the future direction of the digital asset.
Sean McBride, a former director at Ripple, weighed in on this topic, offering insights into the likelihood of XRP evolving into a stablecoin. Contrary to some expectations, McBride bluntly stated that such an evolution is not guaranteed. Instead, he proposed the possibility of classifying XRP as something distinct, perhaps akin to a payments stablecoin.
McBride emphasized that for XRP to facilitate large-scale business-to-business (B2B) transactions across borders and institutions, it cannot remain “dirt cheap.” This assertion underscores the importance of maintaining a balance between accessibility and value stability for XRP in its potential evolution.
Notably, McBride previously asserted that XRP’s current utility already exhibits characteristics similar to those of stablecoins, a sentiment echoed by the World Bank. This recognition suggests that, at least for the time being, Ripple may not necessarily need to introduce a stablecoin asset, as XRP’s existing functionality fulfills certain stablecoin-like functions in the digital asset landscape.
