Ripple CTO recently expressed his preference for using XRP on the XRP Ledger instead of Ripple’s stablecoin, for payment processing. He shared his view on X in response to concerns raised by the crypto community about Ripple’s recent business strategies.
The discussion began when crypto enthusiast Green Sam criticized Ripple’s recent decisions, including its pivot towards smart contracts, its collaboration with Ethereum, and a pre-IPO stock buyback. Sam questioned the effectiveness of Ripple’s liquidity-building efforts on XRPL and expressed skepticism about the shift towards supporting RLUSD on the Ethereum blockchain. Sam also raised concerns about Ripple’s $1.4 billion buyback ahead of its anticipated IPO. He speculated that the move might be an effort to consolidate control or reduce risks before going public.
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Schwartz’s Response: Preference for XRP on XRPL
David Schwartz responded to these concerns by clarifying Ripple’s strategy. He noted that the only connection to Ethereum is the support for RLUSD on its network. However, Schwartz emphasized that he would rather see Ripple using XRP on XRPL, a sentiment likely shared by many in the community.
Jungle, an active member of the XRP community, sought further clarification from Schwartz, asking if Ripple would process at least half of its RLUSD payments on XRPL. Schwartz reiterated his preference for using XRP on XRPL, though his response left some community members unsatisfied.
Debate Over RLUSD and Smart Contracts
Franco Cappello, another community member, proposed an alternative approach. He suggested embracing RLUSD for payments while using XRP as a gas token. Cappello argued that introducing an overcollateralized stablecoin like DAI could leverage XRP’s strengths without exposing it to counterparty risk and volatility.
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Meanwhile, another commenter voiced concerns about introducing smart contracts on XRPL, viewing it as a potential distraction. The commenter recalled that the inability to implement smart contracts was previously attributed to fears of slowing down payments, an issue now seemingly resolved with RLUSD on Ethereum. He worried this shift could diminish XRP’s value and alienate long-time supporters.
Despite the concerns, Schwartz defended Ripple’s strategic decision to integrate smart contracts with XRPL, positioning it as a necessary evolution for the platform.
