Ripple CTO Admits ‘Even Ripple Can’t Use XRPL DEX’ as XRP Faces Longtime Fan’s Scrutiny – Crypto News – Crypto News
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Ripple CTO Admits ‘Even Ripple Can’t Use XRPL DEX’ as XRP Faces Longtime Fan’s Scrutiny Ripple CTO Admits ‘Even Ripple Can’t Use XRPL DEX’ as XRP Faces Longtime Fan’s Scrutiny

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Ripple CTO Admits ‘Even Ripple Can’t Use XRPL DEX’ as XRP Faces Longtime Fan’s Scrutiny – Crypto News

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YouTuber Andrei Jikh questioned why Ripple’s banking partnerships are yet to translate into meaningful on-chain activity.

Ripple’s lack of adoption came under scrutiny on July 30 as its long-time supporter Andrei Jikh, a finance-focused YouTuber with over 2.6 million subscribers, questioned why Ripple’s extensive banking partnerships haven’t yet translated into any meaningful on-chain activity.

“I know people are VERY opinionated about this, but I’ve been following XRP since 2014 and I still have not found the answers to these questions […] Ripple has 300+ bank partnerships, but after 13 years, shouldn’t there be billions in daily on-chain volume?” Jikh wrote in an X post.

He also challenged the logic of transacting in XRP, given its price volatility compared with stablecoins, and questioned why users would actually hold XRP if it mainly acts as a “bridge currency.”

Additionally, Jikh wasn’t buying the argument that bridge currencies will remain necessary once stablecoins cover more currency pairs, and wondered why financial giants like BlackRock would pick the XRP Ledger for tokenization instead of building their own blockchains, like Robinhood, which recently announced plans to leverage Arbitrum, an Ethereum Layer 2 solution.

‘Volatility Isn’t a Minus’

It didn’t take long for Ripple’s Chief Technology Officer, David “JoelKatz” Schwartz, to join the conversation and offer lengthy responses intended to defend Ripple, though some doubts still remained.

On the slow growth of on-chain volume, Schwartz noted that institutions have “historically preferred to use digital assets off-chain rather than onchain.” He acknowledged adoption “has been very slow” but attributed it partly to compliance, pointing out that “Even Ripple can’t use the XRPL DEX for payments yet because we can’t be sure a terrorist won’t provide the liquidity for payment.”

“[…] generally decentralized exchanges on public layer 1’s don’t give you any control or knowledge of who your counterparties are. Logically, I don’t think it should matter, but regulations aren’t always totally logical,” Schwartz explained in another X post.

Regarding XRP’s volatility, Schwartz argued that there may be “use cases where volatility isn’t a minus, or is even a plus,” adding that some investors believe “the upside [is] worth more than the downside,” implying that transacting in XRP is not necessarily a disadvantage.

On incentives to hold XRP as a bridge currency, Schwartz explained that “A bridge currency only works if someone is holding it so that you can get it precisely when you need it,” noting that it might be cheaper to hold the dominant bridge currency when the next needed asset is uncertain.

‘Obviously Silly’

Looking ahead to the future of bridge currencies, the Ripple CTO said that if one stablecoin were to dominate, it could become the sole bridge currency. However, he argued that because stablecoins are tied to specific fiat currencies and jurisdictions, a multi-stablecoin environment will likely persist, keeping bridge assets relevant for tokenized securities and loan portfolios.

When asked why firms might choose to develop private blockchains rather than rely on existing ones, Schwartz emphasized that interoperability and asset portability across multiple chains may matter more than exclusivity, citing Circle’s decision to issue its USDC stablecoin across various blockchains rather than launching its own as an example.

“You can see why that’s obviously silly. I think the same kind of logic will apply to tokenized real world assets over the next year or two,” he said.

XRP Price Chart

XRP hit an all-time high of $3.65 on July 18 and currently changes hands for $3.16 with a fully diluted valuation (FDV) of $316 billion, making it the third-largest cryptocurrency after BTC and ETH, per data from CoinGecko.

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