Ripple CTO David Schwartz explained the obstacles to Ripple’s development in a post he made on Twitter. The Twitter feed discussed banks’ desire to use XRP as a bridge asset and various obstacles encountered in this regard.
David Schwartz suggested that banks’ use of cryptocurrencies such as Ripple (XRP) as bridge assets caused some problems. According to Schwartz, the use of bridge assets by customers to create new products leads to the need for new customers, which causes the company to develop more slowly.
How did the conversation begin?
A Twitter user posted an image of David Schwartz and John McAfee tweets. The image featured a 2018 Ripple CTO comment. In the comment, Schwartz said, “It is too late for us to benefit. Our XRP strategy cannot wait that long. ” seems to say. David Schwartz replied to this post, in which his 2018 tweet was shared, on 28 October. In his reply, he said that he had just stated in the tweet that they would expect banks to adopt digital assets using their own initiative.
The Twitter user was surprised by the Ripple CTO’s response and asked if there might be justified reasons for a bank wanting to use a bridge asset like XRP, but if he had any idea why they deliberately withdrew from the practice. David Schwartz replied without delay.
Obstacles to the company, according to David Schwartz
Schwartz explained the obstacles to banks’ further adoption of XRP as follows:
“I think there are some obstacles. Regulatory uncertainty, last mile issues, fear of retaliation from existing partners, etc. Another important aspect is that the best customers will use bridge assets to create new products.
These clients are highly motivated to see the projects complete, and they want to offer the benefits of the projects to all clients. However, even if the products created in this case are 100% ready for use, they will have 0 customers because the product is new. So the problem is that gaining momentum is slow. ”
I think there are a combination of obstacles. Regulatory uncertainty, last mile problems, fear of reprisals from existing partners, and so on. Another big thing is that the very best customers are ones that are going to use bridge assets to build new products. 1/2
— David Schwartz (@JoelKatz) October 28, 2020