Emily Walker
In a recent dialogue on X (previously Twitter), David Schwartz, the Chief Technology Officer of Ripple, commonly known as “JoelKatz,” responded to critiques regarding Ripple and the XRP Ledger.
Is Ripple Struggling in Its Payment Sector?
User @188ape challenged Schwartz by asking if the XRPL is still unique in the competitive landscape, noting, “many new layer 1s seem capable of performing the same functions, plus more.” Schwartz countered by showcasing the XRPL’s unique attributes, such as its support for stablecoins, non-fungible tokens (NFTs), and a decentralized exchange (DEX), all while minimizing exposure to smart contract risks.
He remarked, “I don’t believe any other blockchain provides features like stablecoins, NFTs, a DEX without the risks associated with smart contracts, which often leave users unsure of their agreements’ implications.”
The discussion heated up when @dr_wonder589 (Dr. Wonder Bread) pointed out that despite these features, they don’t seem to hold significant market value. “Over-engineering something doesn’t imply it holds market worth,” he stated.
In response to this doubt, Schwartz expressed his bewilderment over Ripple’s payment business not being more widely embraced. He stated, “We placed a strong emphasis on payments during our initial design, yet the use of cryptocurrencies for payments hasn’t widely taken off, which surprises me.”
When asked about the reasons for this limited acceptance, Schwartz named several challenges. He pointed out regulatory ambiguity and the struggle to create an excellent user experience as key obstacles. According to him, those with access to traditional banking services prefer them, while those without such services lack extra funds to try new technologies.
“Users with reliable access to financial systems tend to stick with their banks. Those without such access often can’t afford to experiment and need straightforward methods for bill payments. Challenges from having two-sided markets and forming closed loops also hinder progress. Inefficient one-sided flows occur when netting external flows isn’t possible,” Schwartz explained.
The conversation took a sharp turn when Dr. Wonder Bread suggested Ripple’s hurdles serve as an excuse for stagnation while the company continues to finance itself through XRP sales. He implied this could be a strategy to indirectly sway XRP prices and uphold stability.
In his defense, Schwartz underscored Ripple’s transparent approach since 2014. “Ripple made a public choice to concentrate on payments back in 2014 and has been clear about our strategy and reasoning. I don’t think anyone in the industry has achieved as much,” he asserted.
Dissatisfied, @188ape pressed Schwartz for specific examples of XRP success. “Where is the success, David? Share a success story about XRP… I’ll wait,” he challenged. As of now, Schwartz has not publicly addressed this inquiry.
Another participant, @hesu_krypto, noted that Schwartz was discussing Ripple as a whole, not XRP specifically. However, @188ape countered this by suggesting the community believed otherwise. Dr. Wonder Bread added that Ripple might be manipulating the market through indirect methods, hinting at potential securities fraud.
As of now, XRP is valued at $0.70.