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

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.

Interpretation of this information:

According to a recent report, the stability of the currency market has become a growing concern for many investors. In response to this issue, Matt Hamilton, the former developer relations director of Ripple and current chief developer of Protocol Labs, took to social media to discuss his views on the issue. Hamilton highlights XRP Ledger as the first blockchain technology to support stable currencies. On this platform, IOU, or “I own you,” is used to describe this type of asset. The IOU tool allows users to lend or borrow funds, with Circle being responsible for returning the borrowed amount as needed. However, this system requires users to establish a level of trust with their counterparts.

Hamilton goes on to explain that the stable currency concept has evolved since its inception with the arrival of Ethereum, as many people now see stable currencies like USDT or USDC as assets rather than debt obligations. In this way, Hamilton is suggesting that the perception of stable currencies has shifted, with these currencies now being seen as legitimate assets rather than just IOUs.

In summary, the three keywords that underscore this message are XRP Ledger, IOU, and stable currency. The XRP Ledger is celebrated for being the first blockchain technology to support stable currencies. IOU is the term used on this platform to describe the lending and borrowing of funds, with Circle being responsible for returning borrowed funds as needed. Lastly, the concept of stable currencies has evolved thanks to the arrival of Ethereum, with these currencies now being seen as legitimate assets rather than just IOUs or debt obligations.