Ripple CEO Garlinghouse announced at the Cryptocurrency Summit hosted by Yahoo Finance in New York on Wednesday Feb. 7 that Ripple has signed with LianLian, the fifth largest payment system. 4 in China, with xCurrent platform for real-time cross-border e-commerce payments.
He explained about cross-border payments, pointing out that before Ripple’s xCurrent, to transfer £ 10,000 from New York to London on the same day, the fastest way would be to get to the nearby Newark airport, to sit on aircraft and bring money. “XCurrent allows for real-time sending and payment between banks,” he said.
Garlinghouse pointed to today’s common “digital asset misunderstanding”, giving an example from the era dotcom could apply to today’s digital currency environment. He recalled how he was in the telecom early days, visiting with Randall Stephenson, the former SBC Communications chief communications officer, who currently runs AT&T.
Back in the turn of the 21st century, Stephenson told Garlinghouse that SBC would never use IP for voice calls. “The point is, he says they have a powerful analog switched network that makes the voice clear,” and they invest in the data. Garlinghouse points out that today, there is no voice network at AT&T – it’s all VoIP.
“I think a similar thing will happen in the banking industry. Those who invest in us love xCurrent but they are not sure about xRapid (Ripple’s product for liquidity). I can hear Randall Stephenson’s echo, ”he said, saying he views xRapid as an information gathering product, pointing to four current users including payment providers MoneyGram and Mercury. “I think that’s just the beginning,” he said.
He believes that the US Senate hearing on Crypto and Yahoo’s Crypto Summit event are signs of maturity in the cryptocurrency market.
“To me, it’s like 1997 and the advent of the Internet when I was a kid in Silicon Valley,” adds Garlinghouse. We have KYL and AML regulations. There are reasons for that. If exchanges are trying to circumvent KYC requirements, the regulators should go in and enforce that. ”
When compared to Bitcoin, he said, “XRP is 1,000 times faster and cheaper than a Bitcoin transaction. Will you use a portion of BTC to buy a cup of coffee? It will take hours to complete, your coffee will cool,” he said.
Ripple is currently the 3rd largest crypto market cap with 30.6 billion dollars. At its peak in early January it surpassed Ethereum to come second with a market cap of $ 100 billion, but followed by a profit-taking sell-off by investors causing the coin’s value to drop 70%. It is currently priced at $ 0.78.
Ripple is a payments company that focuses on cross-border transactions, a marketplace largely powered by SWIFT for global banks. But as Garlinghouse points out, only a handful of banks dominate SWIFT and extract billions of dollars in profits from the rest of the interim banks.
“Ask why Jamie Dimon is saying the bad things about Bitcoin, Garlinghouse said, they are making a lot of money from other banks. We talk to the banks, and 99.9% of them want Ripple to be successful because they “want to be sick” of paying these people,” he said.
In short, Garlinghouse gave his views on an industry he thought was still in its nascent stage. It is of utmost importance to him and the success of Ripple for the mature industry, including in the media coverage. Meanwhile, he doesn’t view other startups as competitors.
“A lot of them go after different use cases, just like the early days of the Internet. Yahoo is not in competition with Amazon. The internet needs to grow. I want all businesses to increase. A key element of a mature industry is the maturity of all its aspects,” he said.