Ripple CTO: XRP volatility could prevent it from wide use, while USDT can be a universal coin

By Selena On May 25, 2020

At press time, Tether (USDT) has risen to the third position in the cryptocurrency market, defeating XRP. With this breakout, the cryptocurrency community is wondering if XRP will be out of position because USDT is, in fact having more use cases than XRP.

USDT has again reached the top-3 spot over the weekend, pushing XRP to position 4

USDT has more use cases than Ripple

In the course of a discussion regarding the current pandemic and the centralized Internet services rejecting content with any opinions going against the mainstream narrative, David Schwartz, Ripple CTO, has had some discussions about Tether and XRP.

In particular, the question is whether USDT can completely surpass XRP in the future or not because USDT is also often used by traders and entrepreneurs (especially Chinese ones since China has strict capital controls) for transferring money across borders and sending funds between crypto exchanges.

I think they have different use cases. I don’t think an asset pegged to one country’s fiat through a central party you have to trust can be universal. But XRP has volatility that makes it harder to use in many use cases.

— David Schwartz (@JoelKatz) May 22, 2020

Later, Schwartz said:

“XRP and USDT have completely different use-cases. Tether is not used by such remittance heavyweights as MoneyGram or other partners of Ripple taking advantage of the On-Demand Liquidity platform.”

He added:

“USDT could be universal crypto since it is centralized and tied to a fiat currency. However, he admitted that XRP is not perfect either and its volatility often makes it more difficult to use than USDT.”

Cryptocurrency influencer and member of the XRP community, Tiffany Hayden, said that when Tether appeared, they tried to promote their money as an XRP alternative.

She claimed to have found such information in her correspondence from the earlier times between her and a journalist friend.

However, David Schwartz did not comment on this.

Did you know that Tether originally tried to promote itself as an alternative to XRP? I don’t remember that at all, but while reading through some old emails from a journalist friend, I noticed in one of them he mentions that he’s being pushed to write about it. Weird.

— Tiffany Hayden? (@haydentiff) May 25, 2020

The expansion of XRP settlement platform across Europe

In addition, Schwartz also revealed that Ripple is witnessing more demand for remittance products provided by XRP than expected.

Schwartz stated:

“I initially thought Ripple would only see demand in inefficient and historically expensive payment routes with low levels of liquidity.”

Schwartz said customers are proving him wrong:

“In response to a question about an apparent $ 1.5 million rise in 24-hour EUR / USD volume on the platform.”

I didn’t think it would make sense in corridors that are already so efficient and liquid, but we have customers who say the speed and availability at all hours and during holidays makes it useful to them.

— David Schwartz (@JoelKatz) May 24, 2020

In November 2019, Ripple revealed plans to significantly expand the scope of ODL, promising to launch additional corridors in Asia-Pacific, Europe, the Middle East, Africa, and Latin America.

Ripple said:

“ODL has the potential to give companies a new way to free up capital instead of maintaining pre-funds bank accounts in various countries to operate fast local payments.”

Throughout 2019, Ripple said its ODL volume has increased by 550% with the number of transactions increasing by nearly 400% in the last quarter.

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