According to U.Today, Ripple Chief Technology Officer (CTO) David Schwartz has shared his insights on the complexities of creating a decentralized digital asset backed by gold. Schwartz, who played a key role in the development of the XRP Ledger and XRP tokens, responded to an inquiry on the X app about the feasibility of such a project. He stated that it is “really hard to do,” emphasizing the difficulties involved in decentralizing the backing of a gold-pegged cryptocurrency. Schwartz explained that while it is possible to peg a crypto asset to gold, this would involve overcollateralization with tokens rather than actual gold backing, making it more akin to an algorithmic stablecoin like DAI. He highlighted the legal and logistical challenges of storing gold in a decentralized manner, which would require a partner to hold the gold in a jurisdiction where it could be subject to seizure. This raises questions about the necessity of having gold in the first place, a point that remained unresolved in the discussion. Earlier this week, Ripple celebrated a significant legal victory against the Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse announced that the company had successfully reduced a $2 billion fine imposed by the SEC to $125 million. The judge's ruling marked a 94% reduction in the penalties sought by the regulator. Ripple initially offered to pay $10 million but ultimately agreed to the court’s decision. Ripple co-founder Chris Larsen also commented on the outcome, stating that the SEC's aggressive campaign against the company is finally over. He expressed hope that this marks the end of the broader regulatory crackdown on the cryptocurrency industry. Following the news, XRP saw a 25% increase in its value.