XRP News Today: Ripple CTO Argues $1M XRP Practical for Large-Scale Payments

A recent social media post by crypto investor XRP Governor has reignited discussion around Ripple CTO David Schwartz’s past remarks on XRP pricing, particularly his assertion that a $1 million valuation per XRP token is more practical for large-scale payments than a $1 price point [1]. The commentary originally appeared on Quora several years ago and was re-shared in response to ongoing debates about XRP’s utility in institutional settings [1].

Schwartz’s argument centers on the economic mechanics of high-value assets and their role in facilitating efficient, large-volume transactions [1]. He explained that when a high-value payment is needed, such as $1 million, the total value of XRP required remains the same regardless of the unit price. However, a higher per-unit value increases liquidity, making it easier to execute large payments without significantly impacting the market [1]. This principle is analogous to Bitcoin’s behavior at higher price points, where transactions of significant value are easier to execute without causing extreme price swings or slippage [1].

Schwartz used a hypothetical example to illustrate the inefficiency of using a low-priced asset for large transactions. At a price point of $100, a $1 million property transaction would require acquiring 10,000 units of Bitcoin, which could cause upward pressure on the price during the purchase and downward pressure upon sale, leading to volatility and transactional impracticality [1]. In contrast, when Bitcoin reached $10,000, the same $1 million value could be represented with only 100 units, minimizing market impact and ensuring smoother execution [1].

Applying this logic to XRP, Schwartz argued that a higher price per token is advantageous for use in large-value, cross-border payments, aligning with Ripple’s vision for the asset [1]. His perspective challenges the common assumption that lower prices are necessary for mainstream adoption, instead emphasizing how higher liquidity at elevated price levels can facilitate real-world utility [1].

XRP Governor amplified the significance of these remarks by framing them as a direct statement from the architect of the XRP Ledger, suggesting that such a valuation is not merely speculative but grounded in the underlying design and economic principles of the asset [1]. This has led to renewed discussions among the XRP community about the long-term potential of the token, particularly if it achieves widespread adoption in institutional and cross-border payment scenarios [1].

The message, however, is not without nuance. While it presents a compelling economic argument, it does not provide a timeline or guarantee for when XRP might reach such valuations. Furthermore, it does not address regulatory or market risks that could impact the token’s growth trajectory [1]. Nonetheless, it reinforces a narrative among long-term holders that XRP’s value proposition is not incompatible with high prices, but rather may be enhanced by them [1].

Schwartz’s remarks continue to influence perceptions of XRP’s role in the global payments ecosystem, suggesting that its potential as a utility asset is not limited by price constraints [1]. As the crypto market evolves, such perspectives may shape how institutions and investors evaluate the token’s viability for large-scale adoption [1].

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[1] Ripple CTO Once Said $1,000,000 Per XRP Is More Practical Than $1. Here’s why, https://coinmarketcap.com/community/articles/68906ac7f66ec432fbcd028b/