Brad Garlinghouse spoke at the recent European Money 20/20 event in Amsterdam and stated that he believes dozens of banks will be using cryptocurrency next year.
In the interview with CNBC’s Arjun Kharpal, Garlinghouse speaks about how Ripple the company is different from XRP the token, and how XRP is much faster and cheaper than Bitcoin for transactions. He goes on to describe how Ripple uses the XRP technology to solve problems such as cross-border payments.
Garlinghouse discusses Ripple’s involvement with banks and spreading the adoption of Ripple’s xCurrent technology to assist two separate banks in making fiat settlements without the time and expense usually associated with such transactions. xRapid is also mentioned, with its ability to fund real-time liquidity for banks that don’t benefit from pre-funded accounts.
Adoption of xRapid by big financial players in the remittance world, such as Western Union and Moneygram, has helped save the companies between 40 to 70 percent when compared with existing tools. Garlinghouse believes this early adoption and the move from a beta-product to a full release will attract interest from more and more banks moving forward.
He admits that he there is a lot of volatility in the markets and he wouldn’t ‘even dare try’ predict the price of XRP in the future. However, he believes that as hype and reality come into equilibrium, market volatility will reduce and the XRP ecosystem will grow healthier.
While Ripple is currently in third place behind Bitcoin and Ethereum in total market cap, Garlinghouse doesn’t think it’s about the competition of one versus the other. He has strong confidence that by year-end major banks will be using Ripple’s xRapid technology as a tool for liquidity and that hopefully overall growth in many blockchain technologies improves. However, he doesn’t believe Ripple is a challenge to fiat and that it should work in unison to support efficient currencies such as the pound and dollar.
He closes the interview discussing the recent lawsuit against Ripple regarding whether or not it’s a security, and how SEC regulation could, in fact, be a benefit to cryptocurrencies.
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