David Schwartz of ripple discusses why banks are turning their backs on XRP

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• For the fourth biggest cryptocurrency in the industry, XRP has had a tough year. 

• David Schwartz has recently discussed with the community on Twitter as to why many financial institutions have turned their back on the token as a bridge.

For the fourth biggest cryptocurrency in the industry, XRP has had a tough year. The chief technical officer of the San Francisco-based blockchain company ripple, David Schwartz has recently discussed with the community on Twitter as to why many financial institutions have turned their back on the token as a bridge.

Discussing with the community last week on Twitter, the CTO explained that there are numerous things in the way that the company is facing that has resulted in many banks turning away from utilising the XRP token to settle cross-border transactions.

Specifically, the CTO noted regulation worries which are also having an impact on widespread adoption for the token.

Furthermore, the CTO added that another reason for financial institutions ignoring the tokens on a bigger scale is that the product is very new and it will take more time to gain the correct momentum and trust for these banks.

They're heavily motivated to see projects to completion and will push the benefits all the way down to customers. But in that case, even when they're 100% ready to go, they still have 0 customers because the product is new. So it's slow to get momentum. 2/2

— David Schwartz (@JoelKatz) October 28, 2020

Over the course of 2020, the token hasn’t had the best year. Whereas other bigger currencies such as bitcoin and ethereum have performed very well amid the coronavirus pandemic and economic crisis, the ripple token has performed quite poorly.

To add insult to injury, the exciting announcement from PayPal last month did not include the token in its list of cryptocurrencies that it would be offering to its user base. Not to mention that the PayID branded payment standard is currently facing a lawsuit in Australia for intellectual property.

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