Ripple CTO David Schwartz explained why banks have been reluctant to adopt XRP as a bridge
Referring to the expansion of banks’ adoption with Ripple and especially XRP, CTO David Schwartz shared some of the hurdles Ripple is facing. According to him, this is a serious problem that leads to banks being reluctant to use XRP to settle cross-border transactions.
Ripple CTO David Schwartz explained why banks have been reluctant to adopt XRP as a bridge
This has been a really tough year for payment-focused cryptocurrencies. According to Schwartz, there are several hurdles that Ripple is facing leading to banks being reluctant to use XRP to settle cross-border transactions. These may include regulatory uncertainty, last-mile problems, fear of reprisals from existing partners, …
Schwartz wrote that he noticed problems such as:
“I think there is a combination of obstacles. Regulatory uncertainty, last-mile problems, fear of reprisals from existing partners, and so on. Another big thing is that the very best customers are ones that are going to use bridge assets to build new products. ”
Another reason banks are hesitant to adopt XRP on a large scale is that the product is so new and that it will take longer to gain proper momentum, Schwartz says.
He stated:
They’re heavily motivated to see projects to completion and will push the benefits all the way down to customers. But in that case, even when they’re 100% ready to go, they still have 0 customers because the product is new. So it’s slow to get momentum. 2/2
— David Schwartz (@JoelKatz) October 28, 2020
The comments are coming in the current context, and its holders are on a rough patch. XRP is down 18.6% for the year and more than 90% down from its all-time high. Besides, Paypal has not included XRP in the list of cryptocurrencies they will offer. The company is facing an intellectual property lawsuit in Australia over its “PayID” branded payment standard.
However, Ripple investors are not the only ones feeling the pain. In a series of tweets published on October 11, Ripple’s Chief Technology Officer, David Schwartz, revealed that he sold 40,000 Ether for $ 1 each back then.
The Ripple executive also said that he regretted selling a significant sum of Bitcoin for $ 750 and a large trove of XRP at $ 0.1, but did not reveal the sales volume.
Ripple’s CTO emphasized that his decision to derisk in 2012 was informed by the fact he is a risk-averse person with people who depend on me financially and emotionally.
David why didn’t the banks brad spoke of in 2018 and 19 who were going to use #xrp materialise? Was this part of the reason you choose to derisk?
— Major Banks (@Thejoke93099730) October 11, 2020
He stated:
“Fate caused me to put a lot of eggs in one basket […] The risk is very high in the entire cryptocurrency space. I’m just too rational to pretend otherwise and suggest others do the same.”
Read more:
- Ripple Is Looking At Japan As One Of The Headquarters And Plans To Invest In MoneyTap, SBI Holdings CEO Says
- Ripple Unlocks 1 Billion XRP, Worth $240 Million From An Escrow Account