Ripple CEO opposes making BTC the sole reserve currency of the United States, sparking intense debate

Original Title: "The Worst Crypto Project?" XRP Vs. Bitcoin Sparks Fierce Debate Over Centralization And Ideology

Compiled by: Hailsman, ChainCatcher

Author: Becca Bratcher, Forbes

The Struggle Between Centralized and Decentralized Visions

In the ever-evolving landscape of digital currencies, Ripple's XRP and Bitcoin stand out as prominent players, each with its unique vision and loyal followers.

This week, tensions between Ripple users and Bitcoin extremists have intensified, highlighting the stark differences between centralized and decentralized digital currencies.

Different Foundations and Conflicting Philosophies

While both are digital currencies, their fundamental ideologies and operational frameworks are vastly different. Bitcoin, as the first cryptocurrency, emphasizes decentralization, security, and a capped supply of 21 million coins.

In contrast, Ripple's XRP aims to facilitate fast and low-cost payments through a semi-centralized blockchain. The company behind XRP, Ripple Labs, focuses on partnerships with financial institutions and emphasizes cross-border transactions.

Strategic Asset Reserves and Escalating Political Tensions

As the industry begins to criticize Ripple's involvement in the request to "establish strategic national digital asset reserves" (part of the digital asset executive order issued by Trump), friction between XRP supporters and Bitcoin extremists has increased.

Pierre Rochard, Vice President of Research at Riot Platforms, believes that XRP is a major obstacle to creating a strategic Bitcoin reserve. He argues that this is primarily because the XRP founding team has been actively lobbying against Bitcoin and recently advocated for establishing a U.S. digital asset reserve featuring XRP prominently.

Rochard criticizes Ripple for being overly centralized, claiming that the control of key figures and the XRP Foundation undermines the decentralized identity advocated by Bitcoin proponents.

Ripple CEO Brad Garlinghouse has been outspoken in defending the company's position.

On January 5, 2025, Garlinghouse commented, "2025 has arrived, and the Trump bull market is real. For Ripple, this is even more personal after Gensler's SEC effectively froze our business opportunities domestically for years. The optimism is evident and very much deserved." He emphasized Ripple's growing influence in the U.S., noting that 75% of Ripple's open positions are now in the U.S., and the company has secured more U.S. deals in the last six weeks of 2024 than in the previous six months.

Garlinghouse also highlighted Ripple's support for Trump's presidential campaign.

Kamala Coin?

However, Ripple's involvement in political campaigns has seen a sharp turn. Chris Larsen publicly supports Harris's technology-driven vision and pledged $10 million in XRP for her campaign.

Centralized and Stagnant: XRP Under Fire from Bitcoin Advocates

Jack Mallers, CEO of Bitcoin payment company Zap, criticized Ripple for promoting a "centralized, corporate-controlled token." In a detailed video lasting five minutes and thirty-eight seconds, Mallers argued passionately that Ripple's centralized nature conflicts with the goals of a strategic Bitcoin reserve, which aims to "support the industry, support jobs, and support technology."

Similarly, Blockspace Media co-founder Will Foxley expressed concerns about XRP. He listed the differences between the two: "Bitcoin is auditable, open-source, and not centrally controlled." Foxley further criticized XRP for its lack of progress, stating that "the 'international banking' development it has touted for over a decade seems to have made no headway." He concluded his remarks on XRP by stating, "It truly is the worst crypto project at the moment."

Shaping the Future of Cryptocurrency: User Education Remains Fundamental

The debate between XRP and Bitcoin further underscores the importance of cryptocurrency regulation. Bitcoin users continue to advocate for decentralized, secure, and scarce digital assets. At the same time, Ripple has the same right to lobby the U.S. government for its interests, potentially paving the way for participation in strategic digital asset reserves.

As the digital asset market matures, such conflicts reflect differing priorities and visions for the future. Ultimately, the competition between XRP and Bitcoin highlights the dynamics and multifaceted nature of the cryptocurrency ecosystem, where the phrase "do your own research" remains crucial.