Ripple CTO Explains Dilemma of XRP Ledger Payments

Ripple CTO David Schwartz highlights a seeming dilemma that XRP Ledger faces in its utility for payments.

The Ripple CTO was responding to a tweet by X user “Mr. Huber,” who asked for clarification on his statement that Ripple was not as successful with payments as expected, contrasting Ripple CEO Brad Garlinghouse’s comments on payment growth at the WEF 2022 Davos.

I guess I didn’t pick the best phrasing. There’s no blockchain that people are really using for payments. At least from my perspective, XRPL was built for, and is great at, payments. But I don’t think anyone is satisfied with the current level of adoption.

— David “JoelKatz” Schwartz (@JoelKatz) February 5, 2024

Schwartz replied, admitting that maybe he did not use the right phrasing and mentioning there is no blockchain that people are using for payments. He noted that, in his opinion, XRPL was built for and is great at payments.

The Ripple CTO pointed out the dilemma faced by XRP Ledger payments: adoption. Schwartz remarked, “But I don’t think anyone is satisfied with the current level of adoption.”

In the past year, Ripple has announced significant expansion, while 2024 promises even more.

Last December, Ripple was added to the Central Bank of Ireland’s Virtual Asset Service Providers Register. Following registration, Ripple will aim to provide services to clients across the European Economic Area once the Markets in Crypto Assets Regulation (MiCA) comes into force at the end of 2024, subject to the acquisition of additional relevant licenses.

Expectations for 2024 remain positive

At the end of 2023, Ripple made various projections that highlighted excellent expectations for 2024. Among these was the prediction that a major U.S. retailer would accept cryptocurrencies as payment, allowing Americans to use blockchain-based payments for everyday purchases.

David Schwartz, Ripple’s CTO, predicted that Real World Asset (RWA) tokenization will drive the blockchain economy, with real estate and commodities leading the way.

Tokenized RWAs on XRP Ledger will improve collateralized loans, increase interoperability and encourage institutional use, transforming the financial system. He anticipates that XRPL will be a leading blockchain for supporting these use cases.

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