David Schwartz, Ripple's Chief Technology Officer, shared his thoughts on current challenges and the future of XRP Ledger (XRPL), as well as the reasons preventing wide-scale use of on-chain payments.
Why XRPL Isn't Used for On-Chain Payments
Schwartz noted that Ripple has over 300 bank partnerships, but on-chain volume has not reached expected levels. He pointed to regulatory hurdles as the reason rather than technical shortcomings. 'Even Ripple can't use the XRPL DEX for payments yet,' he explained.
New Features and the Future of XRPL
Upcoming is the introduction of the 'permissioned domains' feature, which will allow institutions to filter transactions and limit participation to wallets that meet compliance standards. This amendment is already on the ledger waiting for validator approval. Schwartz emphasized that this could be a key moment for increasing on-chain activity.
Opinions on XRP Volatility and Interoperability
Schwartz also addressed the volatility of XRP, noting that in some cases, it can be a positive factor. He explained why companies like BlackRock and Circle might choose to use public blockchains like XRPL instead of building their own systems. 'Why should [Circle] launch USDC only on their own blockchain? That would be silly,' he added.
With upcoming updates and legal issues nearing resolution, some experts believe there could be a sharp rise in on-chain usage of XRPL. While the switch hasn't been flipped yet, the change seems to be within reach.
