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Kiribata

Why is XRP not backed by fiat currency?

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 As I am seeing it right now, a big reason why ripple and xrp are not starting to roll out is the volatility of xrp. Something that could have been excluded if xrp was backed by for example the dollar. I know about the possibility of intermediary businesses that could be responsible for the risks of the volatility. But isn't the concept of ripple just all about creating a way of extremely fast money transfers without any third parties along the way?

It is also confusing because ripple still holds 60 percent of the pre-mined currency. Because of this it is easy to think that ripple has a second goal next to creating a fast and seamless way of transferring money (cross border). And that reason is earning good money for the organization itself. I know that ripple states that they are using the money earned by selling of their xrp to advance the system. But In my opinion this just cannot go hand in hand with the fact that they still own 60 percent. I would also struggle to believe that this "system" is only able to be created with an backup reserve as the 60 percent that has been decided to be held by ripple.

Is it for example not possible to create a fast and cheap crypto currency as xrp that is backed by a fiat currency? Or could anyone tell me why ripple needed to choose to make ripple as it is today.

I will definitely appreciate any thought or comment

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