Why Haven’t Crypto Payments Taken Off? A Ripple CTO Weighs In

Ripple’s CTO, David Schwartz, recently engaged in a Twitter discussion about the slow adoption of crypto payments, specifically addressing criticisms of Ripple and its XRP Ledger (XRPL).

XRPL’s Unique Features and Market Value

A user questioned the XRPL’s uniqueness, arguing that many newer blockchains offer similar or better features. Schwartz countered by highlighting the XRPL’s ability to support stablecoins, NFTs, and a decentralized exchange (DEX) without the risks associated with smart contracts. He argued that this is a unique combination not found elsewhere.

However, another user pointed out that these features haven’t translated into significant market success. Schwartz surprisingly agreed, admitting that the slow adoption of crypto for payments generally is baffling.

Obstacles to Widespread Adoption

Schwartz identified several key hurdles hindering widespread crypto payment adoption:

  • Regulatory uncertainty: The unclear regulatory landscape makes it difficult for businesses to confidently integrate crypto payments.
  • User experience: Creating a user-friendly experience is challenging, especially for those unfamiliar with crypto.
  • Market access: People with access to traditional banking prefer their banks. Those without access often lack the disposable income to experiment with new payment methods. The need for two-sided transactions (buyers and sellers) and the inefficiency of one-sided flows further complicate things.

Accusations of Stagnation and Market Manipulation

The conversation took a critical turn with accusations that Ripple’s slow progress is a convenient excuse, masking a strategy of maintaining XRP’s price through ongoing XRP sales. Schwartz defended Ripple’s transparent strategy since 2014, emphasizing their public focus on payments.

However, users demanded concrete examples of XRP’s success, a request Schwartz hadn’t publicly answered at the time of writing. Further accusations of market manipulation and potential securities fraud were levied against Ripple.

At the time of this writing, XRP was trading at $0.70.