David Schwartz, Ripple’s CTO, disagrees with the concept of artificially lowering the price of XRP to encourage larger institutions to use it.
In a post on X (formerly Twitter), a Ripple executive discussed why offering banks misleading or insincere discounts is a risky practice that Ripple intentionally steers clear of.
The pitch for artificial incentives
Someone on X recently suggested a new way to encourage people to use the digital asset.
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The user suggested offering a small discount on software subscriptions for organizations that prefer to pay using XRP.
Schwartz confirmed the leadership team had considered this idea, but he firmly opposed the strategy of artificially changing prices to encourage people to use it.
The Uber comparison
To explain his idea, Ripple’s Chief Technology Officer likened the use of artificial incentives in crypto to the way companies like Uber initially lost money to gain market share.
Offering discounts or covering expenses can attract customers quickly, but Schwartz cautioned that this often results in an unstable business.
As a crypto investor, something I’ve always watched with Ripple is whether they’re building genuine value or just incentivizing activity with payments, even if that activity doesn’t make long-term sense. It reminds me of how, if I ran Uber for the last ten years, my biggest worry would be if people were only using the service because we were subsidizing rides – basically, paying them to use it instead of because it was a truly better option.
Removing roadblocks
As a crypto investor, what I really appreciate about Ripple, according to Schwartz, is their focus on making international payments much smoother and easier. They believe if they can just remove those frustrating delays and high fees, the actual technology will prove its value on its own.
The company leader stated they will only offer financial rewards when it makes clear business sense.
History of paid adoption
Still, Ripple has historically paid companies to use its technology and the XRP token.
From my analysis, MoneyGram is a prime example of how Ripple operated. They weren’t just partnering with MoneyGram; they were heavily investing in the relationship. Initially, Ripple put in $50 million as an equity investment, and then continued to offer financial incentives – what they called ‘market development fees’ – to encourage MoneyGram to actually use the Ripple platform.
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2026-03-25 09:34