In a recent interview, the Chief Technology Officer (CTO) of Ripple, David Schwartz, discussed the company’s plans to expand beyond its current focus on payments into a wider range of use cases. This shift is happening amidst changes in the cryptocurrency industry and Ripple’s continuous efforts to drive innovation within it.
Ripple Is Still Committed To Payments
Schwartz shared his surprise at the limited use of digital assets in the payment sector, stating, “One of the things that perplexes me the most about this space is that people are not using digital assets for payments, even though they work for payments better than they ever have.” He highlighted the inefficiencies of major cryptocurrencies like Bitcoin and Ethereum, and mentioned that even more efficient blockchains haven’t gained significant traction in the payments realm. Although Ripple has been dedicated to promoting the use of digital assets in payments since 2015, widespread adoption is yet to be realized.
“It’s still baffling to me that we haven’t been more successful,” Schwartz added, expressing his surprise at the slow adoption of cryptocurrencies in remittances and other payment forms. He emphasized that Ripple will continue its focus on payments, while also acknowledging the importance of exploring other use cases.
Addressing concerns about XRP’s price affecting its utility in payments, Schwartz clarified that the market price doesn’t matter when facilitating transactions in XRP, as its liquidity allows for smooth transactions regardless of its value.
When questioned about the status of PolySign, a venture Ripple has invested in, Schwartz cautiously responded, emphasizing the sensitivity of such disclosures due to previous speculation arising from his comments about Ripple’s involvement with PolySign.
Potential New Use Cases
Looking ahead, Schwartz detailed Ripple’s plans for diversification, particularly in real-world asset tokenization. The company aims to develop a multi-chain ecosystem, incorporating smart contract capabilities and enhanced throughput. In this regard, Ripple is working on introducing an EVM-compatible chain to address the current gap in their ecosystem, especially for smart contracts.
Reflecting on Ripple’s growth since 2015, Schwartz noted that the company now has more resources, employees, and technology, allowing it to pursue multiple initiatives while maintaining its commitment to payments. Exploring the Metaverse and NFTs is also on the horizon for Ripple, with potential interest in AI, although specific applications are yet to be determined. Schwartz candidly acknowledged the challenges of timing in these ventures, citing Ripple’s experiences with NFTs and CBDCs as learning points for future endeavors.
At the time of writing, XRP traded at $0.50843.
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