In a rare live exchange on X (formerly Twitter), personal finance influencer Andrei Jikh posed a series of profound questions about the long-term viability of XRP, prompting Ripple's Chief Technology Officer, David Schwartz, to provide in-depth responses.

Jikh, who indicated he has been following XRP since 2014, expressed skepticism about key issues, from the use and volatility of XRP in practice to its role as a bridging currency and its appeal to institutions. The post quickly garnered attention, sparking a broader discussion in the cryptocurrency community.

Key Questions Surrounding the Adoption and Use of XRP

Jikh opened his post with a question about why, despite Ripple having over 300 partnerships with banks and more than a decade of development, XRP has yet to achieve daily trading volumes in the billions.

Schwartz acknowledged the slow adoption rate but emphasized that organizations previously preferred to use off-chain digital assets due to concerns over compliance and regulation.

He added, "Even Ripple has not been able to use XRPL DEX for payments because we are not sure whether a terrorist would provide liquidity for payments." He pointed to upcoming features, such as licensed domains, as a potential solution.

Volatility: Responsibility or Strategic Advantage?

Another urgent concern raised by Jikh is the volatility of XRP, questioning why it is used instead of stablecoins for transferring money.

Schwartz replied that volatility is not always a disadvantage. "There are use cases where volatility is not a downside, it can even be an upside," he said, adding that many in the digital asset space view the potential for price appreciation as worth the risk, especially for those who are not overly risk-averse.

Regarding holding XRP, Schwartz noted that bridging currencies still require holders to maintain liquidity. "If you don’t know which asset you will need to hold next, you might hold the dominant bridging currency," he explained, arguing that it can minimize conversion friction between different digital assets.

Are Bridging Currencies Becoming Obsolete?

Jikh also questioned whether bridging currencies like XRP would be necessary in the future as stablecoins dominate. Schwartz suggested that the likelihood of this is low.

"A stablecoin can only be stable compared to a specific fiat currency and will always have legal constraints," he said. In a multi-stablecoin world, XRP or similar assets could still serve as a neutral bridge, especially when trading with less commonly traded tokenized assets like loan portfolios or securities.

Why Should We Use XRPL Instead of Building a Proprietary Blockchain?

Citing examples such as Robinhood's use of Arbitrum and plans for their own blockchain development, Jikh asked why large companies like BlackRock choose XRPL for tokenization.

Schwartz responded by comparing it to Circle, the company behind USDC. "Why haven't they deployed USDC on their own blockchain? You can see that as absurd," he said, arguing that interoperability and asset mobility are more important than ownership of the platform in the tokenization space.

Addressing Concerns About Geopolitics and Trust

The final point Jikh raised was about geopolitical risk: why should foreign countries trust a private company based in the U.S. like Ripple?

Schwartz distinguishes Ripple as a company and XRP Ledger (XRPL) as a decentralized protocol. He said, "XRPL has never discriminated against any participant."

Regarding Ripple's enterprise solutions, Schwartz emphasized that the company operates through separately licensed entities around the world. However, he acknowledged that Ripple's headquarters in the United States may create disagreements in certain geopolitical contexts.

Community Response and What's Coming Next

The deep exchange between Jikh and Schwartz highlights the ongoing tension between the ideals of cryptocurrency and its implementation in the real world. While XRP advocates praise its potential as a global liquidity solution, critics remain cautious about its adoption rate, regulatory hurdles, and competitive standing.

However, Schwartz's candid responses suggest that Ripple remains committed to developing its technology and making a case for organizations and the cryptocurrency community at large.