The USDC Stablecoin (USDC) of the Circle was launched on the XRP Ledger (XRPL) on Thursday, which brought an overcollateralized dollar-pegged token to Layer-1 blockchain network users.
According to a announcement From Ripple, the launch of the USDC on the platform will allow investors to use XRP as a currency bridge to move their stablecoins between decentralized exchanges (DEX) through an auto-bridging feature. Markus Infanger, the senior vice president of Ripplex added:
“Stablecoins are the main points of entry that connect traditional financial markets with crypto space – essential for using utility -focused cases rather than speculation.”
Support for the USDC in XRPL came in the middle of a combined -joint pushing to Promote comprehensive stablecoin regulations In the United States, as the sector is dipping over $ 237 billion in market capitalization with geo-strategic and macroeconomic implications.
Related: Fortune 500 interest in Stablecoins Triple since last year: Coinbase
Stablecoins became the focal point of protecting the anxiety of the US dollar
Overcollateralized stablecoin issues Buy short -term US treasury bills to restore their Digital fiat tokenCollecting yield from government security as income.
A growing number of US lawmakers and officers viewed stablecoins as a way to ease the De-dollarization of foreign countries offloading US government debt due to concerns with Creditwortiness of US government and the decline of the US dollar value.
Like sovereign powers that dispose of US debt instruments, the bond yields a spike as investors demand increased interest payments to lend to the government.
This in turn, leads to higher debt service costs for the government, causing $ 36 trillion national Debt To be more expensive to maintain and further enhance the basic amount of the loan, creating a vicious finances of debt to repay the creditors and fund the budget.
During the White House Crypto Summit on March 7, Treasury Secretary Scott Bescent promised to prioritize the development of Stablecoin in Protect the hegemony of the US dollar By stealing demand for stablecoins to increase US dollar offense worldwide.
https://www.youtube.com/watch?v=qmqka4otfig
However, critics of the Fiat system such as Bitcoin (Btc) Advocate Max Keizer said the plan to coast the decline of demand for the US dollar with stablecoins will only delay the inevitable collapse of the dollar but will not save it.
Stable tokens supported by gold is outcompete dollar-pegged stablecoins For many reasons including the high stock-to-flow ratio of gold, which protects its value from rapid inflation and price losses, said Keizer.
Magazine: Bitcoin payments are weakened by centralized stablecoins
