David Schwartz, Ripple's Chief Technology Officer, has reaffirmed his perspective on XRP pricing and its utility in payments. His latest remarks address investor concerns about XRP's modest price growth since 2017, while emphasizing the cryptocurrency's untapped potential in payment systems despite its widespread availability and technical advantages.
Ripple CTO Stands By Original Argument
In a 2017 discussion, Schwartz noted that XRP's price must rise to function efficiently for high-value transactions. He explained:
- Price Proportionality: A $1M XRP payment costs $1M, whether XRP trades at $1 or $1M.
- Market Efficiency: Higher prices reduce transaction market impact, enabling smoother large-scale transfers.
Back in 2017, XRP traded between $0.17–$0.28. As of 2024, it hovers around $0.54—a 92% increase, paling in comparison to Bitcoin’s 500% surge. This disparity has frustrated some investors, prompting sarcastic remarks about XRP’s "dirt cheap" status.
Schwartz responded by reiterating his core thesis: XRP’s transactional cost scales with its price. Higher valuations make payments less disruptive but don’t change the fundamental economics.
"Last I checked, $1M worth of XRP still costs $1M. Making a $1M payment with XRP will cost at least $1M."
— David Schwartz (September 20, 2024)
XRP’s Strengths vs. Payment Adoption Challenges
A community member criticized Schwartz for allegedly dodging XRP’s underperformance in payments. Schwartz countered by outlining XRP’s competitive edge:
- Top 5 cryptocurrency by market cap.
- Low fees and fast confirmations.
- Widespread exchange availability.
Yet, he acknowledged a broader industry issue: crypto payments remain niche.
"Virtually no crypto is used for payments today. XRP isn’t adopted more for the same reasons others aren’t."
— David Schwartz (September 21, 2024)
Why Aren’t Crypto Payments Mainstream?
While Schwartz didn’t delve into specifics, experts cite:
- Regulatory uncertainty (e.g., XRP’s delisting from NY greenlist).
- Integration complexities with legacy financial systems.
- Volatility concerns deterring merchants.
👉 Discover how XRP could bridge traditional and crypto finance
FAQ: XRP and Crypto Payments
Q: Does XRP’s price affect its utility for payments?
A: No. A $1M payment costs $1M regardless of XRP’s price—but higher prices improve market efficiency.
Q: Why hasn’t XRP gained traction in payments?
A: Like most cryptos, adoption hurdles include regulation, infrastructure gaps, and merchant hesitancy.
Q: What makes XRP suited for payments?
A: Speed, low fees, and liquidity. Its top-5 market cap ensures accessibility.
👉 Explore XRP’s role in cross-border transactions
Disclaimer: This content is informational only and not financial advice. Conduct independent research before investing. The Crypto Basic isn’t liable for financial losses.
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