Custodia Bank CEO Caitlin Long recently participated in a podcast and made harsh assessments of Ripple and XRP.
Long claimed that Ripple had failed to fulfill its mission of replacing traditional banking, particularly the SWIFT network. Furthermore, he argued that XRPL had not made significant progress over the years.
The Custodia Bank CEO also suggested that Ripple had undermined trust by raising a large amount of funds in advance through an ICO.
However, XRPL validator Vet (Vet_X0) vehemently denied Caitlin Long’s XRP initial coin offering claims, saying she didn’t clearly understand the issue. Vet said that Ripple never did an ICO when the XRP Ledger was launched and all 100 billion XRP were deposited into the Genesis account and that XRP had no value when it first came out.
Vet also responded to decentralization claims, saying, “…. The XRP Ledger is decentralized. Claiming otherwise is either ignorance or lack of education. There is no one stopping you from joining the network, managing the infrastructure, or forking the codebase.”
The Real Problem Is Not the SEC Lawsuit!
Long claimed that Ripple’s real problem isn’t just the SEC lawsuit, but deeper issues. The CEO stated that Ripple’s main problems are its centralized network design and flawed token model, and that banks do not trust XRPL and stay away from it.
“Ripple’s moves to become a regulated financial institution and issue a stablecoin are a tacit admission that the XRP Ledger will never replace SWIFT,” Long said, referencing Ripple’s recent move to obtain a National Bank Charter and Fed master account for its stablecoin.
Finally, Long said that he predicts that if the US Treasury Department decides to tokenize T-Bills, it will choose a mature, permissionless platform like Ethereum rather than XRPL. At this point, Long argued that Ripple wasn’t even a likely candidate for a major government blockchain deployment. When asked which network the US Treasury Department would choose to tokenize assets like US Treasury Bills, Long bluntly said the choice would be Ethereum (ETH) or Bitcoin (BTC), but not Ripple.
Ripple CTO Responds!
Ripple CTO David Schwartz, in response to criticism, challenged the public to discuss the facts regarding Ripple, the XRP Ledger, and the RLUSD stablecoin. “Dear Caitlin Long, I am ready to discuss the facts about Ripple, RLUSD, XRP Ledger, and XRP.”
This is not investment advice.
