The ongoing conversation regarding blockchain technology has taken a new twist as Ripple’s Chief Technology Officer, David Schwartz, stepped into the fray. This follows criticisms leveled at Ripple and its associated technologies by Custodia Bank’s CEO, Caitlin Long, who expressed her skepticism about the firm’s decentralization and overall impact on the financial sector during a recent interview.
Caitlin Long’s Assessment of Ripple’s Position
Caitlin Long, the founder and CEO of Custodia Bank, made waves with her assertions regarding Ripple and its digital asset, XRP, during a recent episode of the Gold Goats ‘n Guns podcast. She described Ripple’s fundraising mechanism as akin to an initial coin offering (ICO), raising questions about its credibility in financial institutions. Long observed that despite Ripple’s longstanding presence in the blockchain sphere, it has yet to achieve significant milestones in revolutionizing traditional banking frameworks, such as SWIFT.
Furthermore, Long mentioned that Ripple’s decision to introduce its stablecoin, RLUSD, through regulated financial channels marked a substantial strategic shift. This change indicates a departure from solely relying on the XRP Ledger (XRPL) for global transactions. While acknowledging the challenges posed by regulatory scrutiny in the United States, she argued that the XRPL’s potential in the international payments landscape remains uncertain.
Long further opined that, when the U.S. Treasury ultimately explores blockchain solutions to tokenize Treasury bills, it is likely to favor Ethereum due to its established reputation and widespread adoption in the market.
XRP Supporters Respond
The ripple effect of Long’s commentary prompted a counter-response from the XRP community, particularly from a prominent member known as Vet. In a detailed rebuttal, Vet labeled Long’s statements as misinterpretations and highlighted key facts, asserting that Ripple had never executed an ICO, and that all 100 billion XRP tokens were created under a genesis account, valuing nothing upon inception.
Vet underscored the decentralization of the XRPL by referencing the robust network of over 1,000 nodes and a diverse array of 100 independent validators distributed globally. He also contrasted this with Ethereum’s ICO-based launch and emphasized Ripple’s ongoing commitment to integrating the XRPL within its product offerings, including RLUSD’s issuance on the ledger.
In a broader context, Vet celebrated the XRPL’s pioneering features, such as its decentralized exchange and tokenization abilities, positioning it as a significant player in the blockchain ecosystem.
Following Vet’s comprehensive reply, David Schwartz reached out on social media to invite Caitlin Long for a fact-driven dialogue. Acknowledging the initial points made by Vet, Schwartz emphasized the value of open discussion regarding the merits and realities of Ripple, RLUSD, the XRPL, and XRP.
Image credits from Unsplash, chart data sourced from TradingView
