President Donald Trump, also referred to as the “Cryptocurrency President,” yesterday signed an executive order prohibiting federal agencies from creating, issuing, or even promoting central bank digital currencies (CBDCs). With this now confirmed, the move will have a major impact on decentralized alternatives as more opportunities will be available for decentralized stablecoins, and the main focus currently is on Ripple’s RLUSD, which is pegged to the US dollar.
Will Ripple’s RLUSD take the lead?
Ripple’s RLUSD, a decentralized stablecoin running on the XRP Ledger, could benefit significantly from a ban on central bank digital currencies. Since RLUSD is not controlled by a central authority, it makes for a transparent and user-driven alternative for digital transactions.
The main goal of restricting the use of central bank digital currencies (CBDC) was to limit central control over digital currencies so that they are compatible with the basic principles of decentralized blockchain.
Thanks to Ripple’s well-established network and experience in the cross-border payment segment, RLUSD is ready for widespread adoption after the CBDC ban. Furthermore, Ripple is committed to regulatory compliance and technical innovation which gives RLUSD a competitive advantage compared to other stablecoins such as USDT, USDC, BUSD, DAI, and PAX.
As a stablecoin pegged to the US dollar, RLUSD provides the same reliability and stability of value that users typically look for in fiat-backed cryptocurrencies. All this without the government interference and control that comes with central bank digital currencies.
Why RLUSD?
Thanks to Ripple’s powerful technology and inclusion in the financial sector, RLUSD is set to provide seamless cross-border payments and transfers, in the absence of central bank digital currencies, which in turn will increase the utility and attractiveness of the stablecoin.
Banning central bank digital currencies is said to bring more innovation in the private sector because in this digital age, companies and individuals usually look for alternatives to digital currencies. Ripple’s RLUSD, with its specific framework, low transaction cost and fast transaction time, could become a preferred choice for people looking for decentralized and regulated digital assets.
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