Finance Industry Insider Says Banks Will Never Use XRP

Rajat Soni, a finance industry veteran with 10 years of experience, has publicly criticized XRP, calling it a “scam” and asserting that banks will never adopt it.

In a recent tweet, Soni outlined his reasons for why he believes XRP lacks the necessary qualities to be embraced by financial institutions. To him, Bitcoin is the actual digital currency that will shape the future of finance.

XRP “Has Centralized Risk”

Soni’s main critique centers on XRP’s decentralization, citing that the American payment firm Ripple largely controls XRP. Specifically, he pointed out that Ripple holds approximately 50% of the total supply of XRP.

In his view, this heavy concentration of ownership leaves the cryptocurrency vulnerable to price manipulation and presents a major risk to potential users, especially financial institutions. 

As a result, he concluded that “XRP is not decentralized,” asserting that banks do not want to be taken advantage of, as they are typically the ones who take advantage of others.

Furthermore, Soni claimed that Ripple has the ability to alter the XRP code and issue more coins if they choose, a claim many dub false. Soni argues that this “lack of true decentralization” makes XRP unattractive to banks. In his opinion, the idea that banks will adopt XRP is a misguided belief.

Meanwhile, Soni argued that a U.S. regulatory crackdown could hinder XRP’s price ascent. He claimed that aside from hopes that banks will eventually use it, many are not really interested in XRP. He recalled how the price of XRP tanked after the announcement of a lawsuit against Ripple in late 2020 to back his view.

Moreover, Soni claimed Ripple’s periodic sales of XRP contributed to the asset’s inability to reach an all-time high in seven years.

Bitcoin as “True Future of Digital Currency”

In contrast to XRP, Soni praised Bitcoin for its decentralization and growing global adoption. He stated that Bitcoin’s code is open-source, and any user can run the software, making it more resistant to control or manipulation.

Furthermore, he cited that the largest Bitcoin holders own no more than 5% of the total supply, preventing any single entity from taking control of the currency.

Soni also highlighted Bitcoin’s growing use in countries where traditional banking systems are inaccessible. He noted that if Bitcoin were banned in one country, it would still be used and traded in others. In his view, it is unlike XRP, claiming it could likely lose value if it were banned in the U.S.

Soni’s XRP Stance Under Check

It is worth noting that Soni is a longstanding XRP critic and Bitcoin maxi who has continued to issue heated pieces on the token.

Meanwhile, members of the XRP community have mostly grown immune to his takes, with lesser efforts to resist his negative narratives about the coin.