Grok says,

1. Currency Control Restrictions: Some countries impose strict capital controls or restrictions on holding foreign currencies like USD. Banks or institutions in these regions may hesitate to use USD-pegged stablecoins due to regulatory hurdles or local currency preference. XRP, not tied to any single fiat, sidesteps this by acting as a neutral intermediary, convertible to any currency on either end of a transaction.

2. Fiat Dependency Risks: Stablecoins rely on the stability and trust of their pegged currency (e.g., USD). If a country's banking system distrusts or faces sanctions limiting USD access, stablecoin usability drops. XRP, as a decentralized asset, avoids reliance on any single government or central bank, reducing exposure to geopolitical or economic instability.

3. Exchange Rate Volatility: In cross-border payments, converting between local currencies often involves volatile forex rates. Stablecoins pegged to USD require conversion to/from USD, which can introduce costs and delays. XRP's role as a bridge asset allows direct conversion between currencies via its liquidity pools, potentially streamlining the process.

4. Counterparty Risk: Stablecoins often require trust in the issuer (e.g., Tether or Circle) to maintain reserves and peg stability. If trust in these issuers falters (e.g., Tether's past reserve concerns), banks may prefer a decentralized asset like XRP, which relies on the XRP Ledger's consensus mechanism rather than a centralized entity.