- The price and adoption of Ripple (XRP) remain slow despite partnerships with over 300 banks.
- Low on-chain usage is limiting the growth of XRP in global payments.
- Traditional banks hesitate to adopt new technologies, affecting XRP integration and trust.
- Competition from stablecoins, which are linked to fiat currencies, challenges XRP’s role in cross-border transactions.
- Geopolitical factors and regulatory barriers influence the pace of XRP adoption worldwide.
Ripple (XRP), a cryptocurrency aiming to revolutionize cross-border payments, is facing slow adoption and price growth even after forming over 300 partnerships with banks worldwide. Its real-world usage and daily transaction volumes have not met expectations given its broad institutional engagement.
According to David Schwartz, CTO of Ripple, institutions often use digital assets like XRP off-chain—meaning transactions occur outside the public blockchain—resulting in lower visible on-chain volume. “Ripple has 300+ bank partnerships, but after 13 years, shouldn’t there be billions in daily on-chain volume? I think there are a number of reasons why institutions have historically preferred to use digital assets off-chain rather than on-chain. I think we’re close to changing that because institutions are starting to see the benefits of moving on-chain. But I agree it has been very slow,” Schwartz stated.
Banks often resist adopting new financial technologies. Many remain loyal to traditional systems, making it difficult for digital payment solutions like XRP to gain traction. Additionally, Schwartz noted concerns regarding the use of blockchain for compliance and security. “Even Ripple can’t use the XRPL DEX for payments yet because we can’t be sure a terrorist won’t provide the liquidity for payment. Features like permissioned domains will address this,” he added.
Trust issues also play a role. Some institutions have doubts about relying on a U.S.-based private company for international payments, especially in regions with geopolitical sensitivities. “If you mean Ripple’s enterprise payment products, we have separately licensed entities in many jurisdictions. But obviously, you’re not going to see it in North Korea or Cuba any time soon, and there might be, in some cases, pushback to a U.S. company having some control over payments between certain countries,” Schwartz explained.
Rising competition from stablecoins—cryptocurrencies tied to stable government-backed currencies—also affects XRP‘s relevance. Stablecoins’ price stability helps avoid volatility, a benefit increasingly valued for cross-border transactions. As stablecoins attract more users, XRP continues to seek its unique advantage in global payments.
For more information about XRP’s position in the market, visit XRP Institutional Accumulation Fuels $8 Price Target Optimism and XRP Falls Below $3: Is This Your Chance to Buy Low, Sell High?.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Top MSTR Influencer Sells, Calls Michael Saylor a “Liar”
- SkyBridge to Tokenize $300M in Assets on Avalanche Blockchain
- 1inch DAO Battles 1inch Labs Over Revenue, Decentralisation at Risk
- US State Actor Suspected in Targeting Russian Solana Devs With Malware
- Ethereum ETFs See $197M Outflow as Unstaking Queue Hits $3.9B
