Brad Garlinghouse, Chief Executive Officer of Ripple, believes dozens of banks to be using Ripple by the end of 2019, given its speed of transaction and low cost. He was interviewed by CNBC at Money 20/20 Europe on Tuesday 5.
Ripple is developing a Blockchain based service that facilitates cross-border transactions between financial institutions and banks. Not only does Garlinghouse claim that ripple products are faster and cheaper, but he also touts them as mostly more effective than the services in the marketplace today, a claim that centers mainly on its use of blockchain and digital currency.
The company has a number of different blockchain-based products including; xCurrent, xRapid, xVia, and Interledger Protocol (ILP). xCurrent is the new name of Ripple’s solution for banks and other financial institutions to send and receive cross-border payments.
Notably, xCurrent provides interoperability between all currencies and not just digital currencies. xCurrent facilitates banks and other financial institution to transact with each other, even if the sender wants to pay in Euro but the recipient wants to receive money in Japanese Yen. This is made possible by connectors in xCurrent that hold value in a number of currencies. Earlier this year, Santander Bank Rolled out Ripple-Powered App in four nations.
According to Ripple’s website, Cross-border transaction to emerging markets often require pre-funded native currency account around the globe, “meaning liquidity costs are high.” To counter this challenge, Currency would be sent into the xRapid system, converted into XRP to move it through Ripple’s network, then be converted back into whatever currency is required at the other end.
Garlinghouse noted that by the end of 2018 he expects major banks and financial institution to use XRP as a liquidity tool. Adding that “it is necessary to continue to grow the XRP ecosystem and liquidity.”
Ripple’s CEO recently said that the high correlations between bitcoin’s and XRP’s prices could end soon as crypto enthusiasts and investors begin to understand the use cases for different cryptocurrencies. Garlinghouse also said that 99% of more than 1,500 cryptocurrencies traded today would not be there in 10 years especially those with no business use case.