CEO of Bitcoin Bond Company Pierre Rochard expressed doubts that the emerging tokenization sector will create favorable conditions for the mass use of Ether and XRP for payments.
According to Rochard, the current financial system already addresses issues of slow payment speeds and high fees. In particular, Rochard mentioned the Depository Trust & Clearing Corporation (DTCC), which clears and settles securities as a cooperative owned by its users. Large companies have no reason to abandon a proven system in favor of one that burns fees to inflate the value of crypto assets while maintaining operational costs. Therefore, tokenization solutions for institutional investors are unlikely to succeed, believes the Bitcoin maximalist.
Rochard noted that cryptocurrencies ETH and XRP have no clear advantage over exchanges like NASDAQ or ICE, which operate seamlessly and charge very low fees. These altcoins are aimed at people who cannot open brokerage accounts but can use cryptocurrency wallets. As Rochard stated, ETH and XRP 'squeeze fees' from the poorest investors in the world, who already have little capital to invest in the markets.
Another obstacle to the mass adoption of these cryptocurrencies for payments is the high competition among blockchains, said Rochard. He explained that due to the open-source nature of blockchains, new networks can always emerge that are capable of disrupting any profit model. The outcome of the blockchain competition will be determined not by their practical utility, but by marketing, where stablecoins like USDT will dominate, surpassing ETH or XRP. This is already happening, added the fervent Bitcoin supporter.
Earlier this year, Rochard accused Ripple of hindering U.S. authorities from creating a national reserve in Bitcoin. Previously, Rochard predicted a crazy decade for Bitcoin, triggered by multi-billion dollar investments from fund managers into cryptocurrency.
