Ripple’s former director of developer relations, Matt Hamilton, has dispelled one other common false impression surrounding XRP. This time it was discuss and hypothesis that XRP may very well be backed by gold. This sort of discuss has emerged comparatively lately amid hypothesis that XRP may very well be accepted by the world’s banks and different monetary establishments for worldwide settlements and can be backed by gold for its honest worth.
No gold for XRP
Hamilton is adamant that such an end result is unimaginable. The blockchain developer explains his view that XRP is a decentralized cryptocurrency with finite provide, which trades on the open market and has no issuer to carry collateral for gold. Because of this, Hamilton explains, XRP can’t be inflated to have a peg with one other asset.
The one contact between gold and XRP is feasible by means of its tokenization through XRP Ledger, with the creation of a token monitoring the dear steel’s quotes, concluded the developer. For individuals who don’t consider it and nonetheless assume in any other case, Hamilton provided to alternate one ounce of gold for one XRP.
You possibly can observe gold by tokenising it on the XRP Ledger and making a token similar to XAU like firms have been doing for the previous decade. However you may’t again XRP itself with gold.
— Matt Hamilton (@HammerToe) February 26, 2023
Beforehand, the previous Ripple director, now a contributor to the Filecoin (FIL) ecosystem, additionally debunked rumors of a authorities buyout of the XRP providing. This concept was additionally extraordinarily common among the many group and instructed that XRP can be purchased again by the U.S. authorities at costs rumored to be as excessive as $10,000 per token.