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XRP Ledger: The First Blockchain Supporting Stable Currency

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It is reported that in response to the recent problem of the stable currency market, Matt Hamilton, former developer relations director of Ripple and now chief

XRP Ledger: The First Blockchain Supporting Stable Currency

It is reported that in response to the recent problem of the stable currency market, Matt Hamilton, former developer relations director of Ripple and now chief developer of Protocol Labs, said on social media that XRP Ledger is the first blockchain to support the so-called stable currency. On XRPL, this type of asset is named and called IOU (I own you) tool, that is, debt obligation. Users lend 1000 dollars in exchange for 1000 USDC, and Circle will return it as needed, Such a system requires users to clearly determine their level of trust in counterparties. Matt Hamilton said that the concept of stable currency changed because of the arrival of Ethereum, because people began to regard the stable currency such as USDT or USDC itself as an asset rather than the debt of other assets.

Former developer relations director of Ripple: Ethereum has changed the concept of stable currency from debt to asset

Analysis based on this information:


According to the recent news, stable currency market is facing a problem, and a former developer relations director of Ripple and current chief developer of Protocol Labs, Matt Hamilton, made a statement on social media regarding XRP Ledger’s role in supporting stable currency. He expressed that XRP Ledger is the first blockchain to support stable currency, which is named and called IOU (I own you) tool on the ledger, acting as a debt obligation. This system works by users lending 1000 dollars in exchange for 1000 USDC, and Circle returning it as needed. However, this requires the users to have a clear understanding and assessment of the trustworthiness of counterparties.

Matt Hamilton emphasized that the concept of stable currency has shifted over time, particularly when Ethereum came into existence, which allowed people to consider stable currencies such as USDT or USDC as assets, rather than the debt of other assets. This has led to a significant change in the perception of stable currencies, and they are now used for trading, storing value, and transferring funds.

XRP Ledger has employed the IOU tool for a long time, and there are several advantages to using stable currencies as debt obligations rather than assets. For example, it reduces the volatility of the cryptocurrency market, providing stability to users. Additionally, the use of stable currencies can lead to a broad range of use-cases and bring more transparency to the market.

However, using IOU as a tool requires users to be aware of the risks associated with lending and borrowing. It is essential for users to evaluate their counterparties’ trustworthiness and carefully choose who to lend/borrow money.

In conclusion, XRP Ledger’s IOU tool is pioneering the use of stable currencies as debt obligations, bringing a new level of stability and transparency to the cryptocurrency market. However, users must be cautious and responsible in choosing who to lend money to, to prevent any issues of trustworthiness.

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