Is XRP a Stablecoin Now? No, and Here’s Why

XRP’s stablecoin potential reignites as 2021 World Bank classification resurfaces, raising questions about its future.

Man standing in front of XRP door next to a scattered road signs of no entry.
Created by Kornelija Poderskytė from DailyCoin
  • The World Bank’s 2021 report has resurfaced, once again labeling XRP as a stablecoin.
  • Ripple’s focus on CBDCs has created a contrast with the stablecoin classification for XRP.
  • Unlike typical pegged stablecoins, XRP’s unfixed value raises questions about the classification.

The debate on XRP’s status has recently been reignited, fueled by comments from former Ripple director Sean McBride and a 2021 World Bank classification of XRP as a “stablecoin.” But here’s the catch: the classification happened more than two years ago. So why is it suddenly gaining traction now?

A Blast from the Past

The World Bank’s 2021 report, “Central Bank Digital Currencies for Cross-Border Payments,” indeed categorized XRP as a stablecoin. This sparked initial discussions about its future role in the stablecoin ecosystem. However, the news seemingly faded away, with Ripple focusing on XRP’s position as a bridge currency for cross-border payments.

Fast forward to 2024, and the classification has resurfaced, raising fresh questions:

Was the 2021 classification accurate? 

The World Bank’s Global Financial Inclusion report categorized XRP as a “stablecoin” due to its price stability and fast transaction times. XRP isn’t pegged to the US dollar, unlike traditional stablecoins. However, it has had relative stability since the report if you count a 50% decline as “stable.”

Is this a hint of a future shift? 

Ripple has consistently positioned XRP as a bridge currency for cross-border payments, aiming to connect different Central Bank Digital Currencies (CBDCs). Some experts believe this goal might be influencing their decision not to introduce their own stablecoin on the XRP Ledger (XRPL).

Why the sudden interest? 

The topic reignited recently due to a conversation involving Ripple supporter Wrath of Kahneman and former Ripple director Sean McBride. McBride’s continued belief in XRP’s stablecoin potential and the World Bank’s classification being brought back into the spotlight fueled the discussion.

XRP: Stablecoin or CBDC Bridge?

While the World Bank labels XRP as a stablecoin, Ripple maintains its focus on positioning it as a bridge currency for CBDCs. This raises further questions:

  • Is Ripple playing both sides? 
  • Could they be keeping their options open?
  • Is the CBDC vision still the priority? 
  • Or could the stablecoin classification be a sign of a shift in strategy?

The Verdict: Unclear.


Despite the recent discussions, XRP’s future as a stablecoin remains shrouded in uncertainty. The 2021 classification has resurfaced questions, but without official confirmation from Ripple or further developments, it’s impossible to say for sure what the future holds for XRP.

One thing’s for sure: the cryptocurrency space is constantly evolving, and XRP’s role in it will likely continue to be a topic of debate. Stay tuned for further developments as this story unfolds.

On the Flipside

  • While the World Bank labeled XRP as a stablecoin, its price has seen significant fluctuations, including a 50% decline since the report. 
  • Despite the stablecoin label, Ripple maintains its focus on positioning XRP as a bridge currency for CBDCs.
  • XRP’s future as a stablecoin remains unclear despite the discussions since Ripple has not officially confirmed its direction.

Why This Matters

Many news outlets have failed to mention that the original World Bank report classifying XRP as a stablecoin was from 2021. This has led to confusion and speculation about Ripple’s plans for XRP. While the classification has sparked renewed interest in XRP’s potential as a stablecoin, it is important to remember that there is no official confirmation from Ripple.

While a settlement between Ripple and the SEC is possible, it is not the only option find out why here:
Ripple vs. SEC Settlement Rumors Swirl But Experts Cry Wolf

Ripple has started 2024 strong. To learn more about Ripple’s recent successes and the challenges it still faces, read the full article here:
Ripple XRP Starts 2024 Strong with String of Victories

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.