Ripple's chief technology officer David Schwartz has defended the utility of XRP cryptocurrency, emphasizing its role in cross-border payments despite market speculation. In a recent online conversation, Schwartz highlighted XRP's unique features while acknowledging the speculative nature of crypto values. He is set to step down as CTO at the end of the year.
Ripple’s chief technology officer, David Schwartz, reaffirmed the utility of XRP during a Thursday conversation on X with crypto podcaster Scott Melker. Schwartz, one of the engineers behind XRP's creation for facilitating cross-border payments, described it as a “blockchain where people can be their own bank and no middlemen tax their transactions.”
He further stated: “XRP is the only asset without a counterparty that can be accessed by every account in every jurisdiction with no risk of default, freeze or clawback.” While conceding that speculation drives most cryptocurrency value, Schwartz expressed belief that “utility matters.”
This exchange underscores a broader debate on what gives cryptocurrencies value: perceived utility or hype. Detractors, including investment firms Hargreaves Lansdown and Charles Schwab, argue that crypto lacks intrinsic value and is anchored in the “greater fool” phenomenon, where investors hope to sell at higher prices. Despite this, Charles Schwab offers crypto trading, and JPMorgan provides cryptocurrency exposure to clients, even as CEO Jamie Dimon has repeatedly dismissed Bitcoin and crypto.
Proponents counter that crypto projects, especially in DeFi and payments, deliver value by reducing transaction costs, promoting financial inclusion, and enabling new economic models. However, XRP’s price remains tied to market hype cycles. On Friday, it traded at $2.52, down more than 30% from its peak of $3.65 on July 18.
Schwartz is due to step down as Ripple's CTO in December.