Cover image via U.Today

Chief Technology Officer David Schwartz from Ripple, a key architect of XRP Ledger (XRPL), recently addressed misunderstandings about the price dynamics of XRP. In a social media exchange, Schwartz clarified various points, including the relationship between staking, securities regulations, and XRP's utility as a payment asset.

The discussion started with questions about the classification of staking as a security and its impact on cryptocurrencies like Ethereum (ETH). Schwartz questioned the rationale behind such classification, stating that staking is not a tradable asset and does not involve transactions typically regulated under securities laws.

Another topic of conversation was whether XRP's effectiveness as a payment asset is dependent on its price. Schwartz confirmed that a higher price for a fixed supply asset like XRP improves its practicality for payments and intermediation. He rejected the idea that Ripple aims for a lower XRP price for payment utility as "nonsensical."

Currently, XRP is valued at $0.63, with Ripple holding over 40.1 billion XRP in escrow accounts. Schwartz's statements come amidst ongoing community debates on the fundamental factors driving cryptocurrency. With discussions on XRP's price and its role in Ripple's ecosystem intensifying, Schwartz seeks to offer a clearer perspective on XRP's value proposition and its significance in the broader crypto industry.

XRP to USD by CoinMarketCap