XRP: A Global Payment Bridge or a Fading Dream?

In a rare direct exchange on X (formerly known as Twitter), personal finance influencer Andrei Jikh posed a series of profound questions regarding the long-term viability of XRP, prompting Ripple's Chief Technology Officer, David Schwartz, to provide a deep response.

Jikh, who stated that he has been following XRP since 2014, expressed skepticism about the main issues, from the use and volatility of XRP in practice, to its role as a bridge currency and its appeal to institutions. The post quickly attracted attention, sparking a broader discussion within the cryptocurrency community. Key Questions Surrounding the Application and Use of XRP Jikh opened his post with the question of why, despite Ripple having over 300 partnerships with banks and more than a decade of development, XRP has not yet reached daily trading volumes of billions of dollars. Schwartz acknowledged the slow adoption rate but emphasized that organizations previously preferred to use off-chain digital assets due to concerns about compliance and regulation. He added, "Even Ripple has not been able to use the XRPL DEX for payments because we are not sure whether a terrorist would provide liquidity for payments." He pointed out upcoming features, such as licensed domains, as a potential solution. Volatility: Responsibility or Strategic Advantage? Another urgent concern raised by Jikh is the volatility of XRP, questioning why it is used instead of stablecoins for transferring money. Schwartz replied that volatility is not always a disadvantage. "There are use cases where volatility is not a drawback, but even a benefit," he said, adding that many people in the digital asset space consider the potential for price appreciation worth the risk, especially for those who are not overly risk-averse. Regarding the holding of XRP, Schwartz noted that bridge currencies still require holders to maintain liquidity. "If you don't know what asset you'll need to hold next, you might hold the dominant bridge currency," he explained, arguing that it can minimize conversion friction between different digital assets. Is Bridge Currency Becoming Outdated? Jikh also questioned whether bridge currencies like XRP will be necessary in the future when stablecoins dominate. Schwartz believes the likelihood of this is low. "A stablecoin can only be stable against a specific fiat currency and will always have legal constraints," he said. In a world of multiple stablecoins, XRP or similar assets can still serve as a neutral bridge, especially when trading with less frequently traded tokenized assets such as loan portfolios or securities. Why Should We Use XRPL Instead of Building a Proprietary Blockchain? Citing examples such as Robinhood using Arbitrum and the plan to develop their own blockchain, Jikh asked why large companies like BlackRock choose XRPL for tokenization. Schwartz responded by comparing it to Circle, the company behind USDC. "Why haven't they deployed USDC on their own blockchain? You can see that it’s quite ridiculous," he said, arguing that the interoperability and mobility of assets are more important than ownership of the platform in the field of tokenization. Addressing Geopolitical Concerns and Trust The final point that Jikh raised relates to geopolitical risk: why should foreign countries trust a private company based in the United States like Ripple? Schwartz distinguishes Ripple as a company and XRP Ledger (XRPL) as a decentralized protocol. He said, "XRPL has never discriminated against any participants." Regarding Ripple's enterprise solutions, Schwartz emphasized that the company operates through separately licensed entities around the world. However, he acknowledged that Ripple's headquarters in the United States may create discord in certain geopolitical contexts. Community Reaction and What's Coming Next The profound exchange between Jikh and Schwartz highlights the ongoing tension between the ideals of cryptocurrency and its implementation in the real world. While supporters of XRP praise its potential as a global liquidity solution, critics remain cautious about the pace of adoption, legal hurdles, and its competitive standing. However, Schwartz's candid feedback indicates that Ripple remains committed to developing its technology and making a case for organizations and the cryptocurrency community at large.