The debate over XRP centralization was ignited by sharp criticism from Caitlin Long, former CEO of Custodia Bank.
Critique from Ripple's CTO
Caitlin Long, appearing on the Gold Goats’n Guns podcast, described the XRP Ledger as a centralized and outdated network. She cited Ripple's late entry into the stablecoin market with RLUSD as an indicator of the company's failures.
Arguments Against Centralization
Long stated, "Banks have always been skeptical of the XRP Ledger because it’s centralized." She noted that even after a decade of operation, the network has not emerged as a new payment standard. The pre-mined 100 billion coins, with 20 billion reserved for founders, have fueled debates about transparency, with the SEC's lawsuit in 2020 being central to the centralization claims.
David Schwartz's Response and Discussion
David Schwartz expressed his willingness to engage in open discussion, highlighting that most network validators operate independently of Ripple. He also clarified that RLUSD was designed to showcase the Blockchain's smart contract capabilities. Some supporters believe these explanations may encourage Long to publicly engage in the discussion.
The controversy surrounding XRP centralization continues to spark discussions within the community, while Ripple faces numerous challenges in its efforts to integrate with banks.
