XRP Payments Lag Despite 92% Price Surge, Ripple CTO Warns
- David Schwartz argues XRPs price must rise to facilitate efficient high-value payments, despite investor frustrations with its modest 92% increase since 2017.
- XRP remains widely available with low fees and fast confirmation, but it has yet to achieve mass adoption for payments.
- Schwartz acknowledges broader industry challenges, including regulatory hurdles, as factors hindering the integration of digital currencies into traditional financial systems.
David Schwartz, Ripples Chief Technology Officer, once again defended his views on XRP pricing and its role in the payments ecosystem. Responding to an investors question about the tokens stagnant price performance since 2017, Schwartz elaborated on why the token has not yet lived up to its full potential in the world of payments, despite its many advantages.
In a conversation from 2017, Schwartz had stressed that XRPs price needs to rise to fulfill its role as a medium for high-value payments. According to him, the cost of a $1 million transaction is still $1 million, regardless of whether the token trades at $1 or $1 million. However, he added that a higher price would allow for cheaper and more efficient large transactions by reducing the market impact.
Back in 2017, XRP was trading between $0.17 and $0.28. Fast forward to 2024, and it now trades at approximately $0.54, reflecting a modest 92% increase. In contrast, Bitcoin has soared by over 500% during the same period, leaving many Ripple investors frustrated. Some sarcastically commented that the Ripple token is still dirt cheap, despite Schwartzs previous comments that the token would not stay low if it were to succeed as a global payments asset.
In his response, Schwartz stood by his original argument that higher XRP prices make large-scale payments more practical by reducing market disruption. Whether the token trades at $1 or higher, he emphasized that the fundamental economics of the transaction remain the same.
XRP is Widely Available, but Adoption Remains Limited
An XRP community member recently criticized Schwartz, accusing Ripple of failing to position XRP as a major player in payments due to its low price. Despite this, Schwartz pointed out that the token possesses several unique qualities: it is widely available, has low transaction fees, and offers rapid confirmation times. These characteristics make it an ideal cryptocurrency for payments.
However, Schwartz acknowledged that XRP, like most other cryptocurrencies, has not yet gained widespread adoption for payments. He clarified that this is not due to XRPs flaws but rather a broader industry challenge, with digital currencies struggling to integrate with traditional financial systems.
He did not dive into specific reasons for this slow adoption, but many speculate that regulatory hurdles and the complexity of integrating digital currencies into established systems are contributing factors.
Despite XRPs slow price growth, Schwartz remains confident that its utility in payments will grow as the crypto industry matures and more payment solutions adopt digital currencies.
Ripples CTO remains optimistic about the Ripple tokens future, reiterating that its current price does not define its potential in the world of payments. However, slow adoption remains a challenge, requiring patience from both Ripple and its investors.
Read more: https://www.tronweekly.com/xrp-lag-despite-92-price-surge-ripple-cto-warn/
Text source: TronWeekly
