The former CTO at Ripple, David Schwartz, has given three reasons why global banks might prefer XRP to stablecoins amid heated debate over the token’s institutional adoption. He noted that while stablecoins offer stability, XRP also offers many benefits that may attract traditional financial institutions. Schwartz’s remarks came as an analyst predicted a recovery in XRP price.
David Schwartz Gives 3 Reasons Banks May Choose XRP Over Stablecoins
In a recent debate on why banks might still pick volatile crypto assets over stablecoins, Ripple’s CTO Emeritus said that there are various reasons why XRP stands out. He acknowledged that stablecoins are a better choice than other cryptocurrencies because they are not volatile, but in some cases, non-stablecoins have their advantages.
He noted that stablecoins are only as stable as the fiat currencies they are pegged to. Therefore, banks that operate across multiple jurisdictions and deal in multiple fiat currencies may not find these assets as stable as they claim.
Schwartz further added that while stablecoins can be frozen by the issuers, the same does not apply to decentralized non-stablecoins such as XRP. Hence, users might prefer non-stablecoin assets due to the reduced risk of censorship.
Thirdly, Schwartz noted that with crypto assets like XRP, a holder might benefit from price appreciation, which does not occur with stablecoins that maintain a fixed value.
 
“If you don’t need stability, you might prefer a cryptocurrency over a stablecoin for many applications. If I had to lock up some money in an escrow for a year, I might well prefer XRP or BTC to USD because I know USD isn’t going up,” Schwartz stated.
Analyst Forecasts a Price Recovery
Analyst Celal on X notes that the recent drop in the XRP price is simply the price consolidating within a downward-trending channel before recovery happens. He noted that after it touched support at the lower boundary of $1.10, an upward correction is now underway.
The analyst notes that the price might reach $1.80 if it continues with the upward correction and tests resistance at the upper trendline. If the breakout occurs, the price could rally further towards $8.60, potentially reaching it later this year. At press time, XRP traded at $1.29, down 1.02% over the past 24 hours.
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