Ripple’s Chief Technology Officer (CTO), David Schwartz, recently shared insights into the company’s plans to expand its focus beyond payments within the rapidly evolving cryptocurrency industry.
Despite Ripple’s dedication to promoting the use of digital assets in payments since 2015, widespread adoption has remained elusive. Schwartz expressed bewilderment over the underutilization of digital assets in the payment sector and emphasized the inefficiencies of major cryptocurrencies like Bitcoin and Ethereum.
A quest for wider adoption
In a recent interview, Schwartz voiced his concerns about the slow adoption rate for cryptocurrencies in remittances and various payment forms despite their potential to revolutionize these sectors. He acknowledged that Ripple remains committed to payments but indicated that the company is exploring other vital use cases.
Schwartz also addressed concerns about XRP’s price affecting its utility in payments, asserting that the price of XRP doesn’t significantly impact its ability to facilitate transactions. He highlighted the robust liquidity of XRP, which ensures smooth transactions regardless of its market price.
When asked about the status of PolySign, a venture in which Ripple has invested, Schwartz remained tight-lipped, citing the matter’s sensitivity. He refrained from providing details, underscoring the cautious approach to such disclosures.
Diversification plans
Ripple’s plans involve diversifying its focus beyond payments. Schwartz unveiled the company’s interest in real-world asset tokenization, marking a significant shift in Ripple’s strategy. The company aims to develop a multi-chain ecosystem, incorporating smart contract capabilities and enhanced throughput.
Schwartz discussed Ripple’s ongoing work on introducing an EVM-compatible chain to bridge existing gaps in its ecosystem, especially for smart contracts. He highlighted the ease of hiring people with EVM expertise and the benefits of aligning with industry standards for smart contract solutions.
Ripple’s growth and multifaceted approach
Ripple’s growth since its inception in 2015 has provided the company with more resources, employees, and technology. This expansion allows Ripple to pursue multiple initiatives while maintaining its payment commitment.
In addition to its core focus on payments, Ripple is now venturing into the Metaverse and NFTs. Schwartz mentioned the company’s exploration of Metaverse and NFT use cases, although he expressed reservations about the viability of VR use cases. He indicated a strong belief in the potential of AI but acknowledged that the specific use cases for AI within Ripple’s strategy remain uncertain.
Schwartz candidly discussed timing challenges in Ripple’s ventures, drawing lessons from the company’s experiences with NFTs and Central Bank Digital Currencies (CBDCs). He acknowledged that Ripple may have entered the NFT space too late and ventured into CBDCs too early. These experiences serve as valuable learning points for Ripple as it continues to explore new frontiers.
Current market status
At the time of writing, XRP was trading at $0.50843, reflecting the ongoing market dynamics within the cryptocurrency industry.
Ripple’s CTO, David Schwartz, remains steadfast in his commitment to driving innovation within the cryptocurrency space. Despite facing challenges and the slow pace of adoption in certain sectors, Ripple is determined to diversify its focus, explore new use cases, and leverage its growth to remain a prominent player in the ever-evolving world of digital assets.
