Eight years since its launch, XRP is yet to achieve its goal terms of adoption.
2022 will mark a decade since Ripple was launched. However, looking back so far, it has been a tough journey for the blockchain company and its native coin – XRP. This year has not been any different as the payment-focused cryptocurrency has endured an equally difficult period.
CTO David Schwartz recently took to social media to engage the Ripple community about the worrying adoption rate of XRP.
Unlike other cryptocurrencies, the XRP token was designed to be a solution to the challenges in international payment transfers. While the company has tried to realize this goal, it hasn’t successfully achieved a significant milestone due to poor adoption.
Schwartz highlighted several challenges facing the XRP token during the exchange with other Ripple users. He pointed out that the crypto coin has faced a number of issues that have prevented banks from adopting it to settle cross-border transactions. This came after a user by the handle DatdurXRPfeller commented about the inaccurate projections made by Schwartz in 2017.
Responding to this, Schwartz posted, “Just to clear this up, I wasn’t saying anything monumental in that tweet. I was just saying we were going to sit around to wait for banks to adopt digital assets on their own initiative”.
“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. They’re heavily motivated to see projects to completion and will push the benefits all the way down to customers. But in that case […] they still have 0 customers because the product is new. So it’s slow to get momentum”, he added.
The crypto has been on a generally poor run this year with only a few brief moments of positive action. It is currently 93.75% down from it’s all-time high and even worse, PayPal didn’t include the crypto in its list of supported cryptocurrencies. On top of that, Ripple is in the Australian courts over an intellectual property lawsuit involving the ‘PayID’ payment standard.