Ripple’s chief technology officer (CTO) David Schwartz got into a Twitter debate over the utility of XRP in transactions. 

Schwartz responded to a tweet by Venture Coinist founder Luke Martin, who questioned the use of cryptocurrency, including XRP for payments.

According to Martin, stablecoins offer a better solution for digital payments, while saying crypto-assets provide no utility-based incentive for holding long-term. 

Schwartz argued stablecoins would only provide a superior alternative if the entire world could agree upon one digital currency. 

Ripple’s CTO went on to explain how it would be difficult for stablecoins to emerge as a universal asset in the absence of concentrations of liquidity.

Schwartz called one of the benefits of the U.S. dollar its ability to function as an intermediary or bridge between currencies, which he doubted stablecoins were capable of. 

He also called stablecoins, such as the rise of central bank digital currencies (CBDCs), problematic due to their reliance on local jurisdictions and counter-parties.

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