Ripple CTO Emeritus Outlines Major Advantages of Using XRP Over Stablecoins for Global Settlement

What to know:

• David Schwartz says they serve different roles; stablecoins offer price stability, while XRP is optimized for cross-border liquidity and settlement.
• XRP Works as a multi-currency bridge, is more resistant to freezing/control, and can potentially appreciate.
• Both asset types are likely to coexist, with XRP positioned for global liquidity use cases and stablecoins for stability-focused applications.

Former Ripple CTO David Schwartz has explained why cryptocurrencies like XRP still hold key advantages over stablecoins in global financial applications, despite the rapid growth of fiat-pegged digital assets.

Stablecoins vs XRP: Not a Competition, But Different Roles

In a recent discussion highlighted by crypto commentator Diana, Schwartz emphasized that stablecoins and cryptocurrencies are not direct competitors but serve distinct purposes within the financial ecosystem.

While stablecoins offer price stability and are well-suited for certain use cases, Schwartz argued that XRP provides unique benefits, particularly in cross-border payments and liquidity movement. Notably, Ripple itself is actively developing both XRP-based solutions and its stablecoin initiative, RLUSD, reflecting a dual-strategy approach.

Also Read: Here’s What Could Happen to XRP Price if it Captures 50% of SWIFT Transactions – Shocking Numbers

Multi-Currency Flexibility

According to Schwartz, one of XRP’s biggest strengths lies in its ability to operate seamlessly across multiple currencies. Stablecoins are typically pegged to a single fiat currency, such as the US dollar, limiting their effectiveness in multi-currency transactions.

BREAKING: Ripple ex-CTO JoelKatz Says “Stablecoins Are Great” — But XRP Still WINS With More ADVANTAGES @JoelKatz just gave a VERY direct explanation for why $XRP still WINS — even in a world FULL of stablecoins.

He says stablecoins are GREAT for some use cases…

BUT… pic.twitter.com/jUGZ4BtsuR

— Diana (@InvestWithD) April 2, 2026

In contrast, XRP can act as a universal bridge asset, enabling value transfer between different fiat systems without requiring multiple stablecoin pairs. This capability becomes especially relevant in global finance, where transactions often span jurisdictions with different currencies and regulatory frameworks.

Resistance to Freezing and Control

Schwartz also pointed out that stablecoins can be subject to control by issuers or authorities. Funds can potentially be frozen or clawed back due to legal or regulatory actions. By comparison, XRP operates on a decentralized ledger, making it significantly more resistant to such interventions.

This censorship resistance, he suggested, makes XRP more suitable for certain types of international transfers where neutrality and accessibility are critical.

Potential for Value Appreciation

Another key distinction highlighted by Schwartz is that stablecoins are designed to maintain a fixed value, meaning they offer no upside potential. XRP, on the other hand, can fluctuate in value and potentially appreciate over time. This characteristic could be advantageous in scenarios such as escrow arrangements or long-term settlements, where holding an asset that may increase in value adds financial incentive.

Industry Implications

Schwartz’s comments come at a time when stablecoins are gaining significant traction globally, while XRP continues to position itself as a liquidity and settlement solution. His remarks suggest that rather than replacing each other, both asset types are likely to coexist, each playing a complementary role in the evolving digital financial system.

As institutional adoption of blockchain-based payments grows, the distinction between stability-focused assets and liquidity-driven tokens like XRP may become increasingly important in shaping the future of global finance.

Also Read: Ethereum Risks Deeper Pullback as $1,551 Emerges as Critical Support

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