00:00I see a lot of people confused about stablecoins versus XRP or XLM, so I want to just delineate the differences between the two so people have an easy explanation that they can show other people.
00:10Stablecoin requires smart contracts, right? So these are going to be clawback provisions, things where the asset can be frozen.
00:18Governments want domain over their currencies if they're a sovereign currency and they are the one that's issuing it, and so they want all of those things in there.
00:26With XRP, it can't be frozen. You can blacklist addresses, so if you don't want to receive XRP from somebody else, you can blacklist that address, but nobody can freeze your asset.
00:37And there's no smart contract capability for clawbacks or other things like that. When you send the XRP, it's gone, okay?
00:46And so it's very difficult for a government to take these things from you, whereas CBDCs, they could do that all day long.
00:52And they could govern how you could use it, when you could use it, what you can spend it on, all those things.
00:58So those are the main two differences for people that are wondering why somebody would invest in XRP versus just using a stablecoin for transactions.
01:07Stablecoins are relying on third parties or the other person, and so with that, there has to be a level of trust there, and if you don't trust that intermediary, you're going to use something like XRP.
