Recent discussions regarding the decline in XRP Ledger activity have raised questions about its future and applicability. In response to criticism, Ripple CTO David Schwartz provided clarifications.
Issues with XRP On-Chain Activity
Ripple CTO David Schwartz acknowledged that on-chain activity on the XRPL indeed declined by 30-40% in the first quarter of this year. He noted that many institutional players prefer to use digital assets off-chain, which impacts overall network activity. "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 a payment," said Schwartz.
XRP's Position Among Stablecoins
Andrei Jikh, a popular commentator, posed questions about whether XRP could outperform stablecoins in payments. Schwartz stated that some scenarios actually require volatility and that "a bridge currency only works if someone is holding it" for liquidity and efficient conversions. He emphasized that without a single dominant stablecoin, the need for bridge assets is likely to persist.
Lack of Centralization in XRPL
David Schwartz also addressed concerns about using a US-based private company for payments. He explained that while the company’s tools may fall under local jurisdictions, the XRPL itself is not a centralized, US-controlled network.
The discussion around XRP Ledger activity and its application continues to grow. Ongoing questions regarding trust and transparency remain at the forefront of community concerns as XRP faces technical challenges in the financial markets.
