u.today
In a new interview, Ripple CTO and XRPL architect David Schwartz shared his thoughts on Ripple's growth strategy and a pretty measured view of traditional banks in the company's future. In particular, Schwartz talked about the limitations of traditional financial institutions.
He said that banks are slow and conservative, so they are not designed to adopt new technologies quickly. This reluctance to innovate puts banks in a tough spot, especially compared to tech-driven companies like Uber and Airbnb, which invest a lot in payment solutions and operate on a more flexible scale, believes the developer.
Later on social media, Schwartz talked more about Ripple's partnerships with major banks. He said that while these deals can be successful, they do not usually lead to big changes for Ripple, and that is why the company is not really affected by these kinds of partnerships. Even if they do some really good business with a major bank, it is not going to change their whole approach.
By "banks will not be Ripple success stories", what I mean is that even if Ripple does some deal with a big bank even if it works out great for both sides, the bank will not likely be transformed or significantly changed because it was big and sucessful to start with. 2/2
— David "JoelKatz" Schwartz (@JoelKatz) October 31, 2024
Other side
Schwartz thinks that smaller or newer companies can grow a lot and do some cool stuff with Ripple's tech. In this way, the success story will probably come from partnerships with companies that are ready to try new ways of doing payments and financial technology.
An interesting comparison emerged there with Microsoft, as the software giant has helped lots of small businesses to grow by building on its platforms.
Similarly, Schwartz said, such an approach will make Ripple a key player in their growth. It is less about changing traditional banks and more about making meaningful changes with partners who can grow with its technology.