David Schwartz, the chief technology officer of Ripple, a San Francisco-based cross-border payment firm, has supported the theory that XRP was created mainly for the benefit of individuals and not to help traditional banks or financial institutions.
This notion was recently shared by Panos Mekras, the author of “Understanding the Crypto Economy” and founder of DigitalGen Financial Services.
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Mekras, who frowned at some members of the XRP community for choosing to believe the false narratives shared about the sixth-largest cryptocurrency by market capitalization by some influencers and Youtubers took to Twitter to make some facts known about Ripple and the XRP token.
First, the financial advisor noted that “XRP was not created for banks or to help institutions” but was rather created to “destroy the banks’ monopoly and disintermediate them”. To buttress this point, he submitted that “XRP was created for individuals as a better Bitcoin (BTC) for peer-to-peer (P2P) transactions.
He wrote, “XRP is for everyone – especially the people who are sick of banks and centralized entities that charge a lot of fees, have big delays and can censor you. This is the reason XRP Ledger was built. To free the people from such institutions and give the power back to individuals.”
Second, citing the common pitfalls associated with the traditional banking system and networks such as high transaction fees, high charges for currency exchanges, and processing delays, the financial advisor stated that Ripple’s core vision is to help people bypass these challenging issues associated with financial institutions including banks.
“This is what Ripple mentioned on their website in 2013,” Mekras tweeted, adding that Ripple, formerly known as OpenCoin started with a vision to build an open payments system and P2P credit network for people and not banks leveraging the XRP Ledger.
Read Also: Community Calls Coinbase to Relist XRP as Ripple CTO and General Counsel React to Major Development
It bears noting that Ripple has been more focused on facilitating cross-border payments via its RippleNet technology and On-Demand Liquidity (ODL) products. Mekras, who acknowledged this, noted that the crypto solutions company’s intention is to create a level playing field for small banks.
“Even though Ripple later decided to focus on the banking system and cross-border payments, they didn’t do that to help banks and financial institutions, they did it to create a level playing field for the small banks and destroy the SWIFT cartel owned by the big ones,” he submitted.
Notably, Ripple CTO David Schwartz supported all the views shared by the web3 and angel investor.
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