Ripple CTO: Staking is creating assets, while interest income belongs to the transfer of existing value

On December 25, Ripple's Chief Technology Officer David Schwartz responded to the nature of collateral in the crypto market on X. He stated that there is a fundamental difference between creating new value and transferring existing value; collateral belongs to the former, while interest income belongs to the latter.

David Schwartz further explained that when users receive dividends from stocks, these earnings are created/earned by others and transferred to you. However, in cryptocurrency staking, users are creating the assets they obtain. Staking is about creating assets rather than receiving them from others who create/earn these assets.