Ripple CEO Brad Garlinghouse spoke about the company’s cross-border payments and its influence on the global financial environment.
Brad Garlinghouse, the CEO of Californian crypto company Ripple, was present at the Stanford Legal podcast. The official explained the system behind the company’s cross-border payments as well as its connection to blockchain tech.
Commenting on the current banking system, Ripple CEO pointed out how the base layer of the updated system can reduce costs registered by cross-border transactions.
Here’s what he claimed:
“I think about the novelty of blockchain technologies is it allows two parties to transact without trust. Today, if you want to have two parties transact you have to have a trusted intermediary; that’s called a central counterparty. That central counterparty then has trust on both sides and they’re effective that transitive trust is passed in between those two.”
He continued stating that “anybody in the central counterparty business” should mainly be attentive to the progress in the blockchain ecosystem. Garlinghouse did not hesitate to mention the main role of the Internet in this scheme and that the majority of payments have a central counterparty. He added that:
“That takes time and friction and any type of talk about friction, it’s cost. If we do it more efficiently, we can accelerate the global industries that we’re talking about.”
Regarding the use of Ripple’s XRP, the CEO spoke about Ripple Labs and the process of building technologies on the basis of XRP Ledger.
“Some of our products are built a hundred percent using XRP, and some have nothing to do with XRP. You could use Bitcoin for some of the products we offer. The problem is, Bitcoin has some serious scalability challenges.”
“I am personally long Bitcoin. I think Bitcoin is not going to be a panacea that some people thought it would be for many different kinds of transactions and instead you’re seeing specialize in kind of use case dynamics for different kinds of transactions.”
According to CoinMarketCap, Ripple’s XRP is currently traded at $0.337202 and has a market cap of $13,370,114,049.
Author: Adriana Midrigan