Ripple’s CTO David Schwartz took to Twitter to reveal the challenges of XRP cryptocurrency on gaining widespread mainstream adoption. Schwartz’s comments come amid XRP’s poor performance in the crypto market. The cryptocurrency is down by 18.6% in 2020 while 90% over the bottom from its all-time highs.
Challenges of Banks On Using XRP as a Bridge Asset: David Schwartz
A Twitter user posted an image of old tweets from 2018 of Schwartz and JohnMCafee featuring a comment from the CTO saying “It is too late for us to benefit. Our XRP strategy cannot wait that long. ”
So if XRP is still ~.25-.33¢ into 2021, does that make @JoelKatz’s “we can’t wait that long” projection equivalent to the other inaccurate riddlers projections? @officialmcafee pic.twitter.com/rOWeIrqPC4
— jonperez.crypto (@DatdurXRPfeller) October 27, 2020
David Schwartz instantly replied to the Twitter post saying he is expecting banks to adopt digital assets using their own initiatives.
The user was startled by Schwartz’s prompt response and further asked if there might be any justifications for banks using bridge assets like XRP.
Wow! Didn’t expect that. Grateful for the response David. Outside of the clear observable reasons why a bank would want to use a bridge asset like XRP, do you see it as potentially intentional that they’re holding back? Feels like a coordinated opposing operation on that side
— jonperez.crypto (@DatdurXRPfeller) October 28, 2020
Shwartz highlighted that the challenges of banks using XRP as a bridge asset comes with regulatory uncertainty, last-mile problems, fear of reprisals from existing partners, and more saying:
“I think there are some obstacles. Regulatory uncertainty, last-mile issues, fear of retaliation from existing partners, etc. Another important aspect is that the best customers will use bridge assets to create new products.”
JPMCoin Potential Competitor to XRP
Schwartz views that the use of bridge assets leads to creating new products, which in turn leads to a need for new customers/users. That in turn makes the company develop at a slower pace.
The CTO also remarked that banking giants such as JPMorgan and the launch of their official digital currency, JPM Coin, makes it a potential competitor for XRP.
JPMCoin will only be useful for people who trust JPM, are in a jurisdiction that's compatible with JPM, and aren't concerned about their sovereignty. A system nobody can own and control is, IMO, better — especially if you compete with JPM, or hope to.
— David Schwartz (@JoelKatz) October 28, 2020
JPM Coin already fits well for enhancing international payments in a regulatory environment. However, Schwartz points out its limitations saying it can be used only by their banking customers:
“JPM Coin will only be useful for people who trust JPM, are in a jurisdiction that’s compatible with JPM, and aren’t concerned about their sovereignty. A system nobody can own and control is, IMO, better – especially if you compete with JPM, or hope to”