XRP Was Designed to Improve Upon Bitcoin, Says Larsen

XRP was designed to improve upon Bitcoin, according to Ripple co-founder Chris Larsen, who recently elaborated on the motivations behind XRP’s creation during a podcast appearance. The discussion revisited the early intentions of the team that built XRP, highlighting efforts to engineer a more energy-efficient and faster digital currency compared to Bitcoin.

Speaking in a conversation featured on the “When Shift Happens” podcast, Larsen described partnering with a group of technologically adept individuals with the shared goal of building an enhanced digital asset model. Their aim was not only to replicate core elements of Bitcoin, such as decentralization and independence from governments, but to address what they viewed as its inefficiencies.

“There was this incredibly smart group I joined, who were working toward creating essentially a superior form of Bitcoin—a non-government digital currency that didn’t require enormous energy consumption and worked more efficiently,” Larsen stated. His comments make clear that XRP’s foundational principles sought to correct perceived technical and environmental limitations of Bitcoin’s proof-of-work algorithm.

Although Larsen praised Bitcoin for being groundbreaking, he emphasized the downsides of its reluctance to evolve. He noted that Bitcoin’s conservative nature has contributed to its longevity, yet he believes more adaptable alternatives like XRP can offer practical improvements for real-world use cases.

He continued by pointing out the dangers of rapid and haphazard changes within some blockchain projects, subtly directing criticism toward Stellar. Without naming the platform directly, Larsen referenced drastic decisions such as token burns and erratic airdrops, which he argued compromised the system’s credibility.

“When projects start doing things like burning half their token supply or constantly pivoting their strategy, it becomes chaotic. That doesn’t align with the attributes needed for a globally trusted currency,” he explained. This observation appeared to criticize the 2019 token burn conducted by Stellar, which removed over 50% of its total supply, sparking mixed reactions in the community.

Larsen commended the XRP ecosystem, describing the community as resilient, passionate, and unwavering through challenges over the years. In comparison, he seemed to question whether other blockchain communities, such as Ethereum’s, could demonstrate the same long-term loyalty under pressure. “XRP supporters have weathered every storm much like Bitcoin’s early adopters. The real test is whether Ethereum’s community can do the same,” he remarked.

The conversation also touched on Ripple’s views about going public. Commenting on the U.S. IPO process, Larsen criticized how regulatory complexities and market manipulation make it a less appealing option. In his view, short-sellers and layers of bureaucracy create an environment that discourages transparency and innovation.

“The process of becoming a public company has become overly bureaucratic. Plus, you’ve got short-sellers who thrive on spreading misinformation to damage your brand and influence stock prices,” Larsen warned. This stance echoes earlier statements made by Ripple President Monica Long, who affirmed that Ripple does not have immediate plans to go public due to these very challenges.

Larsen’s remarks provide a rare insight into the philosophical and technical motivations behind XRP’s creation. Beyond competing with Bitcoin, XRP has sought to carve a niche as a scalable, sustainable, and enterprise-focused cryptocurrency, prioritizing efficiency over legacy reputation.

Related: Expert Advice: Sell XRP If You’re Confused

His summary of XRP’s identity also reflects the broader narrative of innovation within the blockchain space—where progress, reliability, and stability are frequently competing priorities. As the crypto industry continues to mature, Larsen’s reflections serve as a reminder of the importance of foundational decisions in shaping long-term trust and functionality.