Ripple aims to make the banking system 2 trillion dollars of liquidity

The CEO of Ripple, Brad Garlinghouse, said that the company is working to use XRP as a tool to revolutionize the established banking system.

In a new Interview in the Jay Kim Show garlinghouse says that the current correspondent banking system, which is based, in part, the need for banks and financial institutions to keep money pools to various Bank accounts around the world, is cumbersome and outdated. According to Garlinghouse, the XRP-based product of the Ripple, On Demand Liquidity (ODL), to replace the current model in the long term. Garlinghouse says that Ripple aims to ensure that ODL in the coming years, 2 trillion dollars of liquidity in the current System.

Ripple created On-Demand Liquidity, formerly known as xRapid, to give the banks a regulatory-compliant way to move money by taking advantage of the crypto-currency XRP as a bridge currency. At the Moment, the Transfer of funds from a country like the United States may take to the United Kingdom a few days, during the Transmission of the funds can be very fast, very expensive. Through the use of the product-On-Demand Liquidity Transfers can be in a few minutes without affecting the volatility carried out. In particular, also easily transfer funds between countries with low levels of liquidity in the Fiat can be handled in-trade.

After the transaction was processed in just a few seconds or minutes, you should take the money to the Bank account of the user. The whole process reduces the friction in international payments and transactions. At the same time, the fees are very low, and the transaction times are very fast.

Garlinghouse said that there are over 10 trillion dollars to pre-funded accounts around the world. This is the money that is used to facilitate the banking business and the stock exchanges. In this connection, he commented:

There is $ 10 trillion, which are financed on accounts around the world, what is effectively the Oil that supports the Motor, the correspondent banking traffic. The Oil does not need to be there, otherwise the correspondent banking works. If we can reduce the Oil consumption, improves the efficiency of the world economy. So we feel that we can reduce this to 10 trillion dollars to 9 trillion dollars, and later to 8 trillion dollars. This is a journey that will take many years. But we are incredibly excited about the progress we have made in a relatively short period of time.

Ripple not only works with banks and larger financial institutions, but also with crypto currency exchanges. These exchanges are, according to Garlinghouse is also important, because they provide the necessary liquidity to buy XRP in a particular jurisdiction, and to sell at the place of receipt.

Garlinghouse also said that Ripples experience with MoneyGram that sends 10% of its volume due to its liquidity product to Mexico, is the beginning of Ripples efforts, a new financial system to XRP to build.

We want MoneyGram is a role model. What happens in Detail on this transaction, playing [for the banks] will have no role. At the end of the day, you want to know only the result. And if you can get it at this price, great. […] All, what the customer cares about, really, is that there is a Dollar-Peso offer. I need $ 1,000, to be paid in Mexican Pesos, and I must do it immediately.

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