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The cryptocurrency market is a very liquid one because over 50billion dollars are been traded daily.
Speaking on the Edge that XRP has, the CEO, Brad Garlinghouse mentioned that XRP was specifically created to help banks, especially in cross border transactions. A whole chunk of up to 20 trillion dollars is accounted for yearly in cross border transactions.
Swift, a major international payment network which most banks use for cross border transactions has been laden with challenges in settlement times and accessibility, thereby making the process of cross border transactions slow, error-laden and less cost-effective.
Swift’s gargantuan network consists of over 11,000 banks and financial institutions which may be responsible for the supposed downtime it faces and has thus made it tiresome for individuals and banks alike.
XRP’s network accommodates 200 banks and financial institutions and it possesses great growth potential. The CEO also mentioned that XRP operates an open-source technology that was particularly designated to address the problem of scalability which Bitcoin developed over time. Deducing the fact that XRP is an improvement to Bitcoin as it was created by the same engineers as the latter who foresaw future issues Bitcoin might have. He spoke that ripple is essentially the major stakeholder of XRP as it controls 55% of its shares.
Ripple Sees XRP as a Solution
Speaking of XRP as an improvement to Swift, he explained that XRP was developed based on a technology called “consensus algorithm” which makes transactions faster and cost-effective therefore solving the problem of cross border transactions.
He likened these issues attributed to cross border transactions as a correspondent banking problem which he believes XRP is solving. Commenting on the fact that there may be several other crypto firms whose products and services are also based on open-source technology, he specifically highlighted that Ripple’s main focus is to use open-source technology to advance the payment system.
In his reaction to Facebook Libra, the CEO who seemed relatively unperturbed by the waves Libra is making at the moment believes XRP is an excellent fit for payments industries and the banking sector as well. He also believed that XRP couldn’t be likened to other Stablecoins as it is unique. Its uniqueness stems from XRP covering grounds other Stablecoins are yet to cover.
Ripple’s sole purpose is to make XRP the most liquid, the most efficient, and easiest connecting bridge through sales of APIs.