David Schwartz, the CTO of Ripple, addressed questions regarding the real-world usage of the XRP Ledger and its banking partnerships, discussing the reasons behind the platform's low activity.
Challenges in XRP Ledger Usage by Banks
Schwartz noted that many banks and financial institutions prefer to conduct transactions off-chain due to compliance and security issues. He emphasized that this may change as awareness of blockchain benefits grows. Additionally, Ripple itself has not fully utilized the XRP Ledger's decentralized exchange for payments, as the company needs control over liquidity.
XRP Volatility and Its Impact on Users
Discussing XRP's volatility, Schwartz indicated that in some situations, it might be perceived as a minor issue. For example, for those who believe in XRP's value increase, holding it can be strategically advantageous. He also pointed out that not all users are risk-averse, and some see potential rewards.
Future of XRP in a Stablecoin World
Schwartz also responded to whether additional currencies like XRP will be needed in the presence of multiple stablecoins. He noted that a single stablecoin is unlikely to dominate globally, and XRP could assist in linking less common digital assets.
David Schwartz confirmed that Ripple will continue its efforts to enhance trust in the XRP Ledger and its usage, especially in regions where the company is welcomed.
