In a challenging year for payment-focused cryptocurrencies, David Schwartz, Ripple’s director of technology, recently took to Twitter to discuss with community members why banks are reluctant to accept XRP as a bridge.
During an exchange with a member of the Ripple community last week, Schwartz explained that there are a number of obstacles Ripple faces that have made banks reluctant to use XRP to settle international transactions.
Schwartz writes that he sees issues such as “organizational uncertainty, last-mile problems, fear of retaliation against current partners” that prevent widespread adoption.
Schwartz also said another reason why banks are reluctant to accept XRP widely is that the product is so new, and it will take longer to get a boost.
The comments came against the backdrop of a difficult situation for the coin and its owners. XRP is 18.6% down for the year and is more than 90% below all-time highs.
Additionally, Paypal has not included XRP in the list of cryptocurrencies it can offer, and the company is facing intellectual property lawsuits in Australia over its payment standard with the PayID tag.
However, Ripple’s investors aren’t the only ones feeling the pain: earlier this month, Cointelegraph also revealed that Schwartz sold 40,000 Ether in 2012 for $ 1 each.