XRP Efficiency Debate Highlights Speed vs Liquidity Trade-Off

The XRP community is engaged in a heated debate over the importance of speed versus liquidity in achieving high processing efficiency in cross-border payments.

Some proponents argue that XRP's core competitiveness lies not in its circulating supply, but rather in its structure, which rapidly and repeatedly uses the same asset. They cite the example of Mexico-based cryptocurrency exchange Bitso, which has used a structure that converts U.S. dollars into XRP and then exchanges them into Mexican pesos.

This approach allows for fast settlement cycles, with the same XRP being reused repeatedly. Proponents argue that this makes XRP's competitiveness dependent on 'productive liquidity' rather than simple circulating supply.