What to know:
- Community members suggested discounting Ripple services to encourage banks to use XRP, but leadership says this approach has limits.
- David Schwartz opposes artificial incentives, arguing XRP adoption should come from real efficiency and cost advantages, not subsidies.
- Long-term XRP adoption is more sustainable if driven by organic utility and reduced friction, rather than paid or forced usage.
A discussion within the XRP community has reignited debate over how XRP could be more widely adopted by financial institutions using Ripple’s payment solutions.
Crypto community member The Nightcammie suggested that banks could be encouraged to use XRP by offering discounted subscription fees on Ripple Payments. The idea centers on making XRP usage financially attractive without mandating its adoption.
David Schwartz Responds: Incentives Were Considered
Responding to the suggestion, former Ripple Chief Technology Officer David Schwartz confirmed that such strategies had indeed been discussed internally. However, Schwartz emphasized that his position has consistently been against artificially incentivizing XRP usage if it is not the most efficient or logical choice for customers.
He explained that if XRP, or Ripple’s relationship with it, naturally makes transactions cheaper or more efficient, then those cost benefits should be reflected. But beyond that, he expressed caution about introducing incentives that could distort real usage patterns.
Also Read: Crypto Founder Warns Community to Reject XRP Network – Former Ripple CTO Fires Back
We’ve definitely talked about doing that. My position is that if something about XRP or Ripple’s relationship with XRP actually makes it cheaper/better to use XRP, then we should reflect that. But I’m generally opposed to us giving people artificial incentives to use XRP even…
— David ‘JoelKatz’ Schwartz (@JoelKatz) March 24, 2026
Focus on Organic Demand Over Artificial Growth
Schwartz highlighted a broader concern about building a business model that relies on paying users to adopt a product. He noted that while incentives can be useful in early-stage growth, relying on them long-term could signal deeper issues with the product itself.
According to him, if institutions use XRP only because they are financially incentivized to do so, rather than because it offers genuine advantages, the model may not be sustainable. To illustrate his point, Schwartz referenced the risks of companies growing rapidly by subsidizing user behavior, only to lose customers once those incentives are removed.
Reducing Barriers Instead of Forcing Adoption
Instead of direct incentives, Schwartz said he prefers a strategy focused on reducing friction and eliminating barriers to adoption. This includes making it easier for institutions to use XRP and the XRP Ledger, while ensuring the technology delivers clear, measurable benefits such as cost savings or efficiency improvements.
He also acknowledged that limited incentives can still play a role, particularly when they reflect real cost advantages or help institutions overcome initial adoption risks.
Broader Implications for XRP Adoption
The exchange highlights an ongoing tension in the crypto industry between incentivized growth and organic adoption. For XRP, the discussion underscores a key question: whether its long-term value will be driven by real-world utility and efficiency gains, or by strategic incentives designed to accelerate usage.
As Ripple continues to expand its global payment infrastructure, the balance between these approaches may play a crucial role in shaping XRP’s adoption among banks and financial institutions.
Also Read: Former Ripple CTO Sparks XRP Buzz With Viral Meme Response On X
