In her September 27 tweet, Rosie Rios stated that while other cryptos are speculative, Ripple’s XRP has the main purpose of facilitating cross-border payments.
XRP has a real use case while other cryptos are speculative
Rosie Rios, who was appointed to the Ripple Board of Directors in May of this year, was the 43rd Treasurer of the United States and is also a visiting scholar at Harward’s Radcliffe Institute for Advanced Study.Rios recently tweeted:
“The main purpose of XRP is to facilitate cross-border payments while other cryptos find their value in speculation. China’s latest move brings home that point. “
– Rosie Rios (@RosieRios) September 26, 2021
Criticism from Rois
Although many appeared to agree with Rois’ view, some also dismissed it. As CNBC’s Andrew Throuvalas wrote in his article, Rios’ statement is not entirely true. Throuvalas initially argued that other cryptocurrencies, especially BTC and ETH, are not speculative as BTC is used as a currency in El Salvador and many also use it as a digital store of value, and it is similar with ETH, where most of the DeFi and NFT- Market bases themselves.
Second, Throuvalas argued, XRP isn’t the only digital token that can facilitate cross-border payments. Rather, the implementation of the lighting network by Bitcoin and the recent use of Twitter are clear indicators that others could also facilitate cross-border payments.
Decompose Throuvalas arguments
While Throuvala’s first argument seems plausible, the second is flawed. As if it is true that many other cryptos are trying to serve the similar purpose that XRP does, no one has succeeded in doing so, and at the moment, XRP is the only crypto that does this sufficiently and efficiently.
Besides, like Rois tweeted Just hours ago, XRP doesn’t have a single use case, but the token’s usability is pretty broad. While the main function of XRP is to facilitate cross-border payments, it also serves as the cornerstone of CBDC (central bank issued digital currency) and is also a decent store of value.