The USDC StableCoin (USDC) from Circle was launched on Thursday on the XRP Ledger (XRPL), whereby the over-collateralized dollar token was dropped at users of the Layer-1 blockchain network.
According to an announcement by Ripple, the beginning of USDC on the platform will enable investors to make use of XRP as a bridge currency to transmit their stable coins between decentralized stock exchanges (Dexs) via an automatic bridge function. Markus Infanger, the Senior Vice President of Ripplex, added:
“Stable coins are vital entry points that mix traditional financial markets with the crypto space – to be used cases that focus more on advantages than on speculation, of essential importance.”
The support of USDC on the XRPL is carried out in a concerted advance to find out extensive stable coin regulations within the United States, for the reason that sector concerns over $ 237 billion in market capitalization with geo-strategic and macroeconomic effects.
Stablecoin market overview. Source: rwa.xyz
Stable coins turn out to be the main focus of the protection of the US dollar custody
Overcollateralized StableCoin emitters acquire short-term US financing calculations to support their digital Fiat tokens and collect the return from these state securities as a profit.
A growing variety of US legislators and civil servants sees stable coins as a option to mitigate the reduction in foreign countries that unload the US government's debt regarding the creditworthiness of the US government and the falling value of the US dollar.
Since the sovereign powers throw US debt instruments, the bond memory delivers because investors demand higher interest payments to award the federal government.
This in turn results in higher debt costs for the federal government, which makes the general public debt of $ 36 trillion even costlier to be able to maintain and further improve the capital amount owed, creating an expensive cycle of debt monentization to be able to repay the believers and finance the budget.
During the crypto summit of the White House on March 7, the US Finance Minister Scott Bessent promised to prioritize the event of stablecoin to guard the US dollar hegemony by utilizing the demand for stable coins to extend the frequency of the US dollar worldwide.
https://www.youtube.com/watch?v=qmqka4otfig
However, critics of the Fiat system resembling Bitcoin (BTC) Advocate Max Keizer say that the plan to support the declining demand for the US dollar with stable coins will only delay the inevitable collapse of the dollar but is not going to save.
Stable tokens which might be supported by gold are equipped with dollars for several reasons, including the highly stock-to-flow ratio of gold, which, in keeping with Keiser, protects its value from fast inflation and price depreciation.
