Ripple Execs Discuss XRP’s Future Amid U.S. Election-Driven Crypto Policy Shifts

David Schwartz, Ripple’s Chief Technology Officer, has answered a major query regarding the role of XRP on the XRP Ledger (XRPL) and explained why XRP is still necessary.

In a recent exchange, one XRP enthusiast asked Schwartz if every coin transacted on the XRPL required XRP and the possibility that other assets could run without it. The enthusiast specifically asked if transactions on the XRPL could occur without using XRP as a gas cost.

Breaking 🚨: #Ripple CTO David Schwartz explains that $XRP's role will not be replaced or reduced on $XRPL, addressing community concerns about introducing $RLUSD. https://t.co/uLm73VNmWl

— LOWCO (@lowco487) October 28, 2024

Schwartz responded that XRP is more than just a transaction medium; it is necessary for the XRPL’s security. He emphasized that spam assaults pose a significant risk to public ledgers.

Without a scarce asset like XRP to fund transactions, malevolent users might flood the network with transactions and can halt its operations. In this scenario, XRP serves as a safeguard, levying a fee on each transaction to ensure network stability.

“XRPL uses XRP solely for this reason. “Unless the rules change, nothing can happen on XRPL without XRP,” Schwartz added.

Notably, Schwartz’s statement lends credence to the widely held belief that Ripple’s planned stablecoin (RLUSD) will eventually help XRP because it will run on both the XRP Ledger and the Ethereum blockchain.

Some XRP supporters have previously worried about Ripple’s decision to include a stablecoin in its cross-border payment service may render XRP obsolete inside Ripple’s payment ecosystem.

However, Ripple CEO Brad Garlinghouse and former Ripple insiders have stated that RLUSD will instead benefit the XRP ecosystem by increasing liquidity and broadening its use cases. They assert that stablecoins are critical in DeFi, and that the launch of RLUSD will enhance, not diminish, XRP’s utility.

🚨BREAKING: CEO of @Ripple Brad Garlinghouse says on XRP Ledger Zone Event in Seoul: " $RLUSD helps the overall XRP Ledger ecosystem because it adds liquidity on ledger. "

XRP will auto bridge every $RLUSD transaction! Another use case for #XRP! pic.twitter.com/3xwEfuY0i3

— JackTheRippler ©️ (@RippleXrpie) October 4, 2024

In a recent interview, Garlinghouse stated that RLUSD will take over the position currently held by stablecoins like as USDT and USDC within Ripple payment systems.

 Chris Larsen Backs Kamala Harris for President, Citing Crypto Policy as Key Factor

Chris Larsen, chair and co-founder of the payments company Ripple, has donated millions of dollars to the Democratic presidential candidate Kamala Harris, and he said that crypto policy was the deciding factor in his backing of Harris.

Larsen told CNBC on October 28 that if Vice President Harris or Republican Donald Trump wins in 2024, the “war on crypto is over.” The Ripple co-founder was supporting Harris because he was “really excited by her economic message” of boosting US-based innovation. He also cited her background in the Bay Area’s tech clusters.

BREAKING: 🇺🇸 Ripple $XRP Co-Founder Chris Larsen, Explains Why Kamala Harris Is The Pro-Crypto Candidate!

“I am really, really confident this is going to be a completely different approach, to the failed policy the Biden administration brought” — @chrislarsensf

“Quiet… https://t.co/lkiSCcL6rP pic.twitter.com/MAI5QG1xAo

— Good Morning Crypto (@AbsGMCrypto) October 29, 2024

Larsen was confident that the Harris campaign would take a markedly different approach to cryptocurrency and digital assets. He compared it to what he referred to as the “terrible policy” implemented by the Biden administration. The administration had failed to pay proper attention to the issue and had made the mistake of delegating it to Senator Warren. But the Harris campaign would handle the matter differently. He added.

Many contributions from the cryptocurrency sector, whether through PACs or directly from executives, were used towards backing congressional candidates in the 2024 election season.

Larsen noticed all of Fairshake’s money flowing to the Republican side. However, the Harris administration has made it plain that this will be a totally different approach, a reset. I believe that having bipartisan support and weight benefits the sector. What I did there today [supporting Harris] sort of balances it out.