What to Know:
- XRP’s utility in cross-border payments remains a key focus for the Ripple ecosystem, despite emerging alternatives.
- Analysts argue that XRP can serve as a crucial bridge asset between various stablecoins and CBDCs in the future.
- The Triffin Dilemma highlights the inherent challenges stablecoins face in balancing scarcity and transactional utility, potentially reinforcing XRP’s role.
XRP’s role in the future of cross-border payments is under scrutiny as stablecoins gain traction. Despite the rise of stablecoins, many analysts believe XRP will remain essential for connecting different currencies. Its utility is rooted in solving challenges that stablecoins alone cannot address.
While some critics suggest stablecoins could render XRP obsolete, Ripple CEO Brad Garlinghouse has affirmed the company’s commitment to XRP. Ripple is actively constructing a comprehensive financial infrastructure where the XRP Ledger plays a significant role. This infrastructure aims to capitalize on the real-world use cases of XRP.
When I hear the nonsense argument that sovereign currency stablecoins make the role of XRP obsolete, my next question is how do stablecoins solve the triffin dilemma
It’s not in the US interests to be the dominant issuer of the global reserve currency.
China doesn’t want the… https://t.co/TaO1TcGTxO
— Molly Marlow (@mollyelmore22) November 7, 2025
The Triffin Dilemma, which describes the conflict between a currency’s role as a global reserve and a medium for everyday transactions, further supports XRP’s potential. Stablecoins, while addressing volatility, introduce centralization issues and fail to resolve the Triffin Dilemma. XRP can bridge the gaps left by both Bitcoin and stablecoins.
Experts like Brad Kimes suggest that as G20 nations issue their own stablecoins or central bank digital currencies (CBDCs) on the XRP Ledger, XRP will serve as a vital bridge asset. This bridge will connect different currencies, especially those with varying liquidity levels. Increased liquidity for XRP will further drive its adoption and utility.
In conclusion, while stablecoins present an alternative in the payments landscape, XRP’s unique attributes position it as a key player in the future of global finance. Its ability to facilitate cross-border payments, coupled with its potential role in connecting various digital currencies, ensures its continued relevance in the evolving crypto market, especially as regulations become clearer for digital assets and ETFs gain traction.
Source: Original article
