Despite more than a decade of Ripple developing payment solutions, the trading volume on-chain in the XRP Ledger (XRPL) remains limited 🔍, even with over 300 announced banking partnerships.
💬 A new debate online has rekindled questions about platform usage, regulatory challenges, and token volatility.
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🚧 Why doesn't Ripple use the DEX protocol in its payment system?
The main reason is the regulatory ambiguity surrounding the decentralized exchange protocol (DEX). Ripple has not integrated DEX into its institutional solutions due to the difficulty in vetting liquidity providers, which may allow sanctioned entities to pass through 🚫.
🧩 Solutions like 'authorized ranges' may address this issue in the future, but they have not yet been implemented. Thus, large payments remain outside the DEX environment.
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⚖️ The debate over XRP's volatility and its utility
📉 Some see price volatility as undermining user trust compared to stablecoins, but others view it as an advantage for profiting from price movements. As a bridge currency, XRP requires strong liquidity at the moment of conversion, enhancing its utility in linking assets.
📈 Related: XRPL records a record 5.1 million transactions in 24 hours!
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💵 Stablecoins and real asset tokens
Is XRP still necessary in the era of stablecoins? 🤔
With several stablecoins linked to different financial systems, the need for a neutral bridge token like XRP remains. Especially with the rise of real asset tokens and their spread across multiple chains 🔗.
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🎯 In your opinion, will Ripple succeed in overcoming regulatory challenges and using DEX in the near future? Share your thoughts below 👇
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