Ripple's CTO weighs in on Jack Dorsey's 'Bitcoin is not crypto' remark

David Schwartz, Ripple CTO, clarifies Jack Dorsey's statement "bitcoin is not crypto" by explaining that it means Bitcoin is not part of the class of tokens considered crypto in modern investment discourse, but does not imply Bitcoin is not a cryptocurrency itself. Dorsey, a longtime opponent of altcoins, believes "crypto" is speculative and has little in common with Bitcoin, which is decentralized and scarce.

Jack Dorsey, co-founder of Twitter and CEO of Block Inc., has been a vocal supporter of Bitcoin (BTC) for some time. His latest endorsement involves urging the encrypted messaging app Signal to integrate Bitcoin payments using Cashu, a privacy-preserving eCash protocol. Dorsey tweeted on October 16, "Signal should use Bitcoin," sparking a viral response among Bitcoin enthusiasts, according to TheStreet.

The Bitcoin for Signal campaign is a grassroots initiative that aims to demonstrate the technical feasibility of integrating Bitcoin payments into the Signal app. According to the campaign's website, Cashu enables private, peer-to-peer Bitcoin payments using Chaumian blind signatures. This technology allows users to send Bitcoin with privacy comparable to cash while remaining fully compatible with the Bitcoin ecosystem.

Dorsey's support for Bitcoin extends beyond advocacy. On October 8, Block Inc. rolled out new merchant tools under its Square division, enabling small businesses to accept Bitcoin payments without transaction fees until 2026. Dorsey has also called for a de minimis tax exemption for everyday Bitcoin transactions.

David Schwartz, Ripple CTO, has clarified Dorsey's statement "bitcoin is not crypto." Schwartz explained that Dorsey's comment means Bitcoin is not part of the class of tokens considered crypto in modern investment discourse, but it does not imply Bitcoin is not a cryptocurrency itself. Dorsey, a longtime opponent of altcoins, believes "crypto" is speculative and has little in common with Bitcoin, which is decentralized and scarce.

In a separate development, a Bitcoin wallet linked to Chinese mining pool LuBian has awakened after more than three years of dormancy, transferring nearly $1.3 billion worth of BTC just 24 hours after the U.S. Department of Justice (DOJ) announced one of the largest crypto forfeiture cases in history, as reported by CryptoNews. The timing has sparked curiosity about whether the move was a precautionary reaction to the DOJ’s crackdown or a long-planned reallocation.

The DOJ’s complaint seeks to forfeit around $14.4 billion in Bitcoin, allegedly tied to schemes run by the group’s founder, Chen Zhi. LuBian, which ranked as the sixth-largest Bitcoin mining pool in 2020, has been linked to this network.

The U.S. government's strategic Bitcoin reserve (SBR) is also gaining momentum. The SBR is designed to hold Bitcoin and other cryptocurrencies seized in criminal and civil cases, a departure from the long-standing policy of auctioning off confiscated coins. The U.S. now holds roughly 197,354 BTC, valued at around $22.45 billion, placing it at the top of the global leaderboard of government Bitcoin holders.

These developments underscore the evolving role of Bitcoin in the global financial landscape and the increasing regulatory scrutiny it faces.