Ripple CEO: Bitcoin or XRP are not a substitute for currencies
Brad Garlinghouse, in his capacity of CEO of Ripple, does not believe that Bitcoin, XRP or other crypto-currencies country currencies such as the Dollar, the Euro or the Chinese Yuan will replace it. The environmental conditions were, in his view, not yet ready to be for the “masses-friendly”.
Garlinghouse describes, in an Interview to “The Economic Club of New York” that Bitcoin or XRP in the next time is not to be used as a replacement for traditional Fiat currencies. He sees the use cases for the practice, especially in cross-border payments is justified, since crypto currencies in this area of traditional Fiat currencies are superior to.
He goes on to state that in the near future, people are not Goods in the supermarket even services with digital Assets, to pay (freely translated):
XRP, in my opinion, and really any crypto I don’t think the use case is, today, a use case for consumers. I imagine that a certain percentage of the people in this room, before you came this Morning, made a Starbucks Stop. And you had no problems Paying.
You used your Visa card. Maybe you didn’t have dollars in the pocket, I know. But it has to work. People will adopt not a new thing, unless it helps you in any way.
In some countries of the third world who have no access to financial resources, could crypto-currencies. Crypto-currencies could be solved, especially the Problem of the different value of Fiat currencies (freely translated):
There are markets that have already lost the control over their currency, where the transaction costs for a Visa transaction does not amount to 150 basis points or 200 basis points. There are 800 basis points.
Garlinghouse sees it as, among other things, the current developments from Facebook’s own project Libra justified. Facebook has depicted Libra as a kind of Fiat currency in your white paper, which is of course a thorn in the side of many governments around the world. Nevertheless, the crypto-payment platforms in the world to provide an ever-increasing adaptation of Bitcoin and co. grow. There are many Apps, like Flexa or Wirecard, which enable it to pay with a few clicks within the App for Goods or services at participating stores.
Ripple is currently investing in the further adaptation and Expansion of XRP, through partnerships with the wallet provider, FRG, or the Startup Vega. Thus, new users are to be achieved and markets developed. The platform Vega is currently still under construction, but it provides access to the derviate market that is several trillion of world’s hard. Ripple is trying to be a wise investment decisions early in the most important markets and has a strong partner network. It remains to be seen whether it can claim XRP between other competitors, such as Stellar lumen.
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