Ripple CTO Says XRP Is Where People Can Be Their Own Bank

The Ripple CTO, David Schwartz, recently suggested that the XRP value proposition is that it allows people to be their own banks without depending on middlemen. 

His comments came after Western Union chose Solana over the XRP Ledger (XRPL) to build its stablecoin, a decision that led to discussions across crypto circles about whether XRP still holds unique value within the crypto scene.

For context, international payments giant Western Union recently chose to launch its stablecoin, issued by Anchorage, on Solana. This came after years of testing the XRPL tech. The decision drew ridicule from some corners of the crypto community, as critics claimed XRP had lost relevance.

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Debate Around XRP Utility Following Western Union Snub

Amid the criticisms, crypto analyst Scott Melker, known as The Wolf of All Streets, asked the XRP community to explain what they believe gives XRP real utility now that many of its original advantages seem available on other blockchains.

In response, Santiago Velez, co-founder of Onami Press, noted that XRP has an important role within the XRPL. Specifically, he explained that the token helps prevent spam and denial-of-service attacks by adding a small transaction cost that discourages network abuse. 

He also said XRP was originally designed to support “rippling,” which allows users to exchange equivalent tokens of the same currency and enables easier cross-currency transactions. According to Velez, XRP is a neutral bridge currency with no issuer or counterparty risk, unlike stablecoins that rely on trust in a central issuer.

Melker appreciated Velez’s explanation, commending the designs behind the XRP Ledger. However, he questioned whether those design strengths create sustainable demand for the XRP token itself. According to Melker, spam prevention doesn’t influence price, pathfinding doesn’t always require XRP, and most of the market now prefers the stability and simplicity of stablecoins.

Ripple CTO: XRP Lets People Be Their Own Banks

Responding, David Schwartz said XRP is unique because it lets users act as their own bank. He presented a contrast of two approaches to blockchain: one where users rely on intermediaries who profit from every transaction, and another where users stay in full control without anyone taxing their activity. 

Do you want to use a blockchain where people can be their own bank and no middlemen tax their transactions or do you want to be someone else's bank and tax their transactions? If you want the latter, there are dozens of blockchains for you. If you want the former, there's XRP.

I…

— David 'JoelKatz' Schwartz (@JoelKatz) October 30, 2025

He said XRP represents the second model. Specifically, it gives individuals and institutions the ability to transact directly and globally without middlemen taking a cut. 

Schwartz explained that XRP’s unique position within the XRPL allows it to capture part of the value created by network activity. Unlike stablecoins or IOUs, XRP has no risk of default, freezing, or clawback. Every account across jurisdictions can access it freely, making it a truly neutral asset for open finance.

Meanwhile, one Dr. Roger pointed out that most businesses still prefer to act as intermediaries and profit from the system for as long as possible. He asked what could ever push them to adopt a model that removes that advantage. 

Firms Could Decide They No Longer Need Middlemen

The Ripple CTO noted that the change would come when companies decide they no longer want to rely on someone else to control or profit from their transactions. 

The most obvious case is if they didn't want someone else to be their bank and tax their transactions.

When you ask what eBay is good for, you normally don't think about it being a good way to enrich the people who invest in eBay. You think of it as a way of bringing buyers and…

— David 'JoelKatz' Schwartz (@JoelKatz) October 30, 2025

He compared it to platforms like eBay, which exist to connect buyers and sellers rather than enrich investors who impose unnecessary fees. He said the XRPL follows the same idea, as it acts as a public good that helps users transact without hidden costs or gatekeepers.

Also responding to Melker’s original question about how the XRPL tech benefits XRP price, Schwartz highlighted that much of the crypto market’s value comes from speculation rather than real-world use. 

He noted that many investors focus on potential future price increases instead of present-day utility, using Bitcoin as an example. Despite that, he said he still believes that real utility, not speculation, should drive long-term value.