 
 
A notable lawyer in the crypto community has outlined the benefits of Ripple’s native token (XRP), comparing it against two leading Stablecoins. Per the attorney’s notation, RLUSD and USDT are severely behind in fundamental value offerings when put up against XRP.
In an X post, Pro-Ripple attorney Bill Morgan highlighted the upsides of the XRP token—when compared to leading stablecoins RLUSD and USDT, the lawyer lists up to 6 disadvantages of the latter.
“Stablecoins such as RLUSD and USDT have several disadvantages compared to a bridge currency such as XRP.” The attorney wrote.
The attorney first observes that, unlike XRP, there is a counterparty affiliated with this stablecoin and proceeds to assert that these stablecoins are not finite.
“Tether, for example, is minted at will. They are tied to fiat, such as the USD. That is hardly a positive. Fiat currencies are being steadily debased.” He wrote.
 
Morgan went on to explain that Stablecoins are not universal as they are not pegged to a national currency, which fails to position the asset as a global currency due to the competitive nature of countries.
Bill Morgan maintains that stablecoins are inferior to traditional treasury assets and that they fail to hedge against inflation effectively.
As his post reads;
“They are an inferior treasury asset. They are not a hedge against inflation. Ultimately, there needs to be a neutral bridge currency or currencies without those limitations.”
Notably, stablecoins are less volatile due to their 1:1 peg to a national currency. In the case of RLUSD and USDT, both of which are pegged to the U.S. dollar and are at risk of losing value along with the U.S. dollar if it declines in value as a result of inflation.
It is worth noting that Ripple’s XRP is among the list of crypto assets included in the U.S. Crypto Strategic Reserve, and at the time of writing, the asset is trading at $2.85 per token.
Source: https://zycrypto.com/pro-ripple-attorney-outlines-the-disadvantages-of-rlusd-and-usdt-against-xrp/
