Ripple (XRP) CTO Defends XRPL Decentralization Amid Crypto Reserve Debate

The ongoing debate surrounding Ripple, XRP, and the question of decentralization has reached a boiling point. This time, it’s not just a technical argument—it’s entangled in geopolitical tensions and strategic decisions. This could shape the future of the U.S. crypto landscape.

With the U.S. government considering the inclusion of XRP in a national crypto reserve, the controversy surrounding Ripple’s influence and control over the XRP Ledger (XRPL) has intensified.

Ripple’s CTO, David Schwartz, has responded forcefully to claims of centralization. He is seeking to set the record straight about the XRPL’s structure and governance.

The Crypto Reserve Debate: Ripple (XRP) vs. Bitcoin

The conversation took a sharp turn when Ripple CEO Brad Garlinghouse publicly advocated for a diversified crypto reserve. He says it could include a basket of U.S.-based tokens alongside Bitcoin.

Garlinghouse’s endorsement of a multi-coin strategic reserve has drawn fierce criticism from Bitcoin advocates. They argue that only Bitcoin should be considered as a store of value for the U.S. government.

One of the most vocal critics is Pierre Rochard, VP of Research at Riot Platforms. He has accused Ripple of undermining Bitcoin’s position by lobbying for a broader digital asset reserve.

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Rochard expressed concern about Ripple’s political lobbying and support for central bank digital currencies (CBDCs). He said it could detract from Bitcoin’s potential as the foundation of a U.S. reserve.

Entrepreneur Wayne Vaughan and Bitvolt CEO Nico Moran have also joined the chorus of critics, warning that including other cryptocurrencies like XRP could have political consequences. They argue that Ripple’s actions serve its own interests, potentially sidelining the broader interests of the American public.

Meanwhile, Messari CEO Ryan Selkis voiced his concerns about Ripple’s lobbying efforts, noting that XRP’s centralization and Ripple’s political influence make it an unsuitable candidate for a national reserve.

Selkis contended that XRP is a prime example of why a national crypto reserve should feature only Bitcoin—an asset seen as decentralized and immune to centralized control.

Ripple CTO Defends Decentralization of XRPL

Rochard recently claimed Ripple could potentially fork the XRPL software, alter escrow locks, or even inflate XRP’s supply by issuing trillions of tokens. According to him, Ripple’s control over XRPL raises concerns about centralization and creates vulnerabilities.

In the middle of the heated discussions, David Schwartz, Ripple’s Chief Technology Officer, stepped up to address these claims. In a detailed explanation, Schwartz painted a picture of XRPL as a decentralized and secure network, dismantling the notion of Ripple’s supposed control.

Schwartz explained that XRPL utilizes a consensus algorithm, not the energy-intensive Proof of Work used by Bitcoin, to validate transactions.

Unlike Bitcoin miners who are incentivized to compete for rewards, XRPL validators are not compensated, reducing the risk of dishonesty or centralized control. Ripple, according to Schwartz, has no influence over these validators, making any suggestion of centralization unfounded.

Addressing fears about potential forks or supply manipulation, Schwartz pointed out that XRPL’s decentralized governance structure makes it nearly impossible for any one entity, including Ripple, to enact unilateral changes.

For a change to take place on the network, Schwartz explained that a majority of validators must agree, ensuring that no single party can force drastic modifications.