XRP News Today: Ripple's CTO Defends XRP's Bridge Currency Role Amid Stablecoin Surge

Ripple’s CTO David Schwartz has engaged directly with finance influencer Andrei Jikh on X, addressing concerns about XRP’s real-world utility, volatility, and relevance in an increasingly stablecoin-driven financial landscape [1]. Jikh, a long-time XRP follower since 2014, questioned why, despite 13 years of development and over 300 bank partnerships, XRP does not exhibit billions in daily on-chain volume [1]. In response, Schwartz attributed the slow adoption to institutional preferences for off-chain digital asset use, citing compliance and regulatory concerns as key barriers [1].

Schwartz defended XRP’s role as a bridge currency, arguing that its neutrality and interoperability offer advantages over stablecoins in specific use cases. He highlighted that volatility is not inherently a disadvantage and that XRP’s potential upside is often worth the risk for investors and institutions [1]. Furthermore, he emphasized the importance of maintaining liquidity in bridge assets, noting that XRP serves a function beyond stablecoins in facilitating conversions across various digital assets [1].

Jikh also questioned whether bridge currencies like XRP would become obsolete in a future dominated by stablecoins. Schwartz countered by explaining that stablecoins are inherently tied to specific fiat currencies, limiting their neutrality in a multi-currency world. He suggested that XRP could remain a relevant bridge, especially in the tokenization of less commonly traded assets like loan portfolios or securities [1].

The conversation also touched on the strategic choice for major financial players like BlackRock to use the XRP Ledger (XRPL) rather than proprietary blockchains. Schwartz compared this decision to Circle’s choice not to limit USDC to a single blockchain, stressing that interoperability and asset portability are crucial in the tokenization space [1].

Addressing geopolitical concerns, Schwartz distinguished between Ripple as a company and the decentralized XRPL. He noted that while Ripple operates through licensed entities globally, its U.S. base could create friction in certain markets [1]. Nonetheless, he affirmed that the XRP Ledger itself does not discriminate and remains open to all participants [1].

The exchange reflects broader tensions in the crypto space between idealistic visions and practical implementation. While XRP’s supporters highlight its potential as a global liquidity solution, skeptics remain cautious due to slow adoption, regulatory hurdles, and competition from stablecoins [1]. Analysts suggest that the rivalry between XRP and stablecoins will intensify as both seek to shape the future of cross-border payments and financial infrastructure [7].

Despite these challenges, Ripple remains committed to refining its technology and making a compelling case for XRP’s value in the global financial system [1]. The coming years will be critical in determining whether XRP can maintain its relevance in a market increasingly defined by stablecoins and institutional adoption.

Source:

[1] Is XRP Still Relevant as a Bridge Asset Amid Stablecoin Dominance? Here’s What You Should Know, https://coinmarketcap.com/community/articles/688b295e662d5e6802830e9c/

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