Ripple’s Chief Technology Officer (CTO) David Schwartz has addressed rumors suggesting the company might abandon its association with the XRP token.
Such rumors have been concerning as Ripple has provided major utilities for XRP, which could negatively impact its price.
In an X (formerly Twitter) post, Schwartz clarified that Ripple wasn’t abandoning XRP and explained that the rumors were based on a misunderstanding.
The speculation started when an X user (@AspenSignals) posted Schwartz’s cover photo on his X platform, questioning if Ripple was moving away from XRP.
The confusion stemmed from Schwartz’s cover photo, which hinted that a “web of corruption” in the financial world was preventing Ripple from achieving its goal of providing instant payment services using XRP.
Schwartz clarified that these lines were from a fictional pitch for a fictional movie, not a reflection of Ripple’s reality.
He mentioned that the circumstances depicted in the pitch have not materialized, indicating that Ripple is not facing such challenges.
This clarification comes amid Ripple’s ongoing legal battle with the Securities and Exchange Commission (SEC).
There were concerns that the SEC’s actions, influenced by claims from Ethereum insider Steven Nerayoff, were maliciously enforced against Ripple.
This lawsuit has significantly impacted Ripple’s operations, raising fears that regulatory pressures might force the company to abandon XRP.
Schwartz’s prompt response has alleviated concerns within the XRP community. XRP remains central to Ripple’s operations, primarily used for cross-border payment services.
Ripple, being the largest holder of XRP with nearly 50% of its supply, added to the anxiety over potential market impacts if the company were to abandon the token.
In a CNBC interview, Ripple’s President Monica Long reassured that XRP remains integral to the company’s long-term strategy.
When asked about the necessity of XRP amid plans to launch a stablecoin, Long confirmed that XRP would continue to be used in Ripple’s operations.
She emphasized that Ripple employs a “mix of assets” for its payment services.
Long also noted that XRP has a unique role as a bridge asset for diverse currency pairs.
She hinted at future uses of XRP, stating that it will provide liquidity as Ripple tokenizes more on-chain assets.
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