In a recent interview, Ripple Chief technology Officer (CTO) David Schwartz discussed the company's plans to expand beyond its current focus on payments to a broader range of use cases. This pivot comes against the backdrop of the changing landscape of the cryptocurrency industry and Ripple's continued efforts to innovate within it.
Ripple is still committed to payments
Schwartz expressed his bewilderment at the underutilization of digital assets in the payments sector. “One of the things that perplexes me the most about this space is that people aren't using digital assets for payments, even though they are working to make payments better than ever,” he said.
He pointed out the inefficiencies of major cryptocurrencies like bitcoin and ethereum, but also noted that even more efficient blockchains have failed to gain significant traction in the payments space. Ripple, since 2015, has been dedicated to promoting the use of digital assets in payments, but the expected widespread adoption remains elusive.
“It's still baffling to me that we haven't had more success,” Schwartz added, noting his surprise at the slow pace of adoption of cryptocurrencies in remittances and other forms of payments. Meanwhile, he also emphasized that Ripple will never work on the payment use case:
We firmly believe in payments. We are not going to stop. We are not going to stop making payments. That's not going to happen. However, again, I think these other use cases are extremely important.
Addressing the issue of XRP price affecting its usefulness in payments, Schwartz clarified: “It doesn't really matter. Whether it’s cheap or expensive, if I want to pay you $100 in XRP, I can get $100 in XRP for $100, I can sell it, I can send it to you.” He highlighted XRP's strong liquidity, which facilitates smooth transactions regardless of its market price.
When asked about the status of PolySign, a company Ripple has invested in, Schwartz cautiously responded: “I really wish I could (talk about it), but unfortunately, I'll get in trouble if I say anything.” He reflected on a past incident in which his comments led to unfounded speculation about Ripple's further involvement with PolySign, underscoring the sensitive nature of such revelations.
Possible new use cases
Looking ahead, Schwartz detailed Ripple's diversification plans. “We are very interested in tokenizing real-world assets,” he mentioned, signaling a significant shift in Ripple’s approach. The company is interested in developing a multi-chain ecosystem, including smart contract capabilities and improved performance.
Ripple is currently working on introducing an EVM-compatible chain to close the current gap in its ecosystem, especially for smart contracts. “Hiring people who know EVM is very easy,” Schwartz noted, noting the practical benefits of aligning with industry standards:
I think the next big bet for us is probably some sort of multi-chain ecosystem, starting with the EVM-compatible chain, which will be good. Because currently, if you were in the XRP ecosystem, we basically don't have a smart contract solution. So having one that is industry standard will make it easier, like if you want to hire people to build.
Reflecting on Ripple's evolution, Schwartz observed: “We are much bigger now than we were in 2015. We have many more resources. We have many more employees. “We have a lot more technology.”
This growth allows Ripple to simultaneously implement multiple initiatives. As it continues its commitment to payments, the company is prepared to delve deeper into Metaverse and NFTs. “I think you'll see us looking into other use cases, Metaverse nft use cases,” Schwartz said, adding that he's not “sold” on VR use cases yet, but “ai, I think that will definitely be something.” . But the question is what? And I don't think we know what yet.”
He candidly addressed the challenge of timing in these companies, sharing Ripple's experiences with NFTs and CBDCs as learning points for future projects. “I think with NFTs, Ripple decided that we worried about NFTs too late. And I think maybe with CBDCs, we decided too soon,” he commented.
At press time, XRP was trading at $0.50843.
Featured image from YouTube/CB Insights, chart from TradingView.com