Key Takeaways
- Ripple’s former CTO argues XRP offers advantages over stablecoins.
- Schwartz sarcastically dismissed claims that institutions would avoid XRP due to Ripple’s holdings.
- XRP outlook remains divided.
Ripple’s former Chief Technology Officer, David Schwartz, has defended the continued relevance of XRP in global finance, arguing that banks could still favor the crypto over stablecoins in certain use cases.
His comments, made in a series of posts on X, come as stablecoins continue to gain traction and favor from firms due to their price stability and regulatory clarity.
Why XRP Could Be Chosen Over Stablecoins
Schwartz said stablecoins can be better suited for situations where volatility is a major concern or where a regulated issuer provides additional trust.
However, he outlined three key advantages crypto like XRP may offer.
First, stablecoins are typically pegged to a single fiat currency, limiting their effectiveness in multi-currency, cross-border transactions.
“A stablecoin can only be stable with respect to one currency,” he wrote, noting that applications spanning multiple jurisdictions “don’t benefit as much from the stability.”
Second, he highlighted the centralized nature of stablecoins, which can be frozen or clawed back by issuers.
While acknowledging that companies such as Ripple must comply with legal orders, he suggested decentralized assets reduce reliance on counterparties and potential external intervention.
Third, Schwartz argued that for many use cases, the potential upside of crypto outweighs their volatility.
“If you don’t need stability, you might prefer a cryptocurrency over a stablecoin,” he said, pointing to scenarios like long-term escrow where assets such as XRP or bitcoin could outperform fiat currencies.
Sarcastic Pushback on Bank Adoption Concerns
Schwartz also addressed skepticism from an X user who questioned whether global banks would adopt Ripple give its roughly 34 billion token holdings and the broader retail-driven narrative around the asset.
The user suggested institutions might be wary of boosting Ripple’s valuation or associating with speculative market dynamics.
“Why would global banks choose to use XRP and in turn, potentially boost its price through the roof, when Ripple holds 34 billion tokens?” the user wrote.
Responding sarcastically, Schwartz mocked the idea that banks may avoid a profitable solution simply because it benefits another company.
“In reality, businesses make decisions based on their own bottom line, not on whether someone else also profits,” one X user wrote.
Earlier Pushback on $100 XRP Price Target
Schwartz’s latest comments follow remarks in January in which he cast doubt on bullish price projections for XRP, particularly claims the token could reach $50 to $100.
“I don’t feel comfortable saying something like that,” he wrote at the time, adding that while such outcomes are not impossible, they are unlikely.
He also noted that his own expectations around crypto prices have often been wrong, recalling that he once sold XRP at $0.10 and believed Bitcoin reaching $100 was unlikely.
The comments drew backlash from some XRP supporters at the time.
One user responded: “That statement doesn’t make me real confident in XRP ever reaching a significant price.
“I thought it was designed, by you, to be $10,000 per token? What has changed that makes you now think that it’s not likely?”
In a follow-up post, Schwartz argued that the price of XRP reflect what investors genuinely believe about its future.
“If many rational people believed that there was a 10% chance that XRP hit $100 within a few years, they definitely wouldn’t sell very much today at much less than $10,” he wrote.
Schwartz said investors with that belief would rapidly buy up supply, pushing prices higher.
Bullish vs Cautious
As Ripple expands deeper into traditional financial infrastructure, analysts remain divided on XRP’s price trajectory, with forecasts ranging from major upside to further downside risk.
Some bullish analysts have predicted a path back toward previous highs.
Alex Carchidi, a crypto analyst contributor at The Motley Fool, said XRP could revisit the $3 level in 2026, noting the token has already demonstrated the ability to trade above that range after reaching an all-time high of $3.65 in 2025.
Carchidi pointed to several potential catalysts, including the rollout of the XRP Ledger’s Ethereum Virtual Machine (EVM) sidechain and Ripple’s continued push into institutional finance through new services and acquisitions.
However, others are more cautious, with a focus on upcoming regulatory developments.
Victor Olanrewaju, an analyst at CCN, pointed to an April 13 committee deadline tied to the proposed CLARITY Act as a key near-term catalyst.
According to Olanrewaju, clearing the committee would preserve the bill’s relevance for the current market cycle and could prompt institutional investors to begin positioning ahead of potential demand.
Conversely, failure to meet the deadline could remove what he described as the most immediate fundamental catalyst for XRP in 2026, leaving the asset more dependent on macroeconomic recovery.
Technical XRP Outlook Mixed
Technical indicators suggest a potential turning point may be approaching.
XRP is currently holding above key support near $1.33, with analysts watching for a breakout above a descending resistance trendline that has capped price action since February.
A move above that level could open the door to a recovery toward $1.72 in the near term, Olanrewaju said.
However, downside risks remain a possibility with a break below support could see XRP slip under $1.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
