- “There's a lot of bullish trends for the whole crypto ecosystem” – Ripple CEO
- But the whole market won’t grow or “live up to its potential”
- XRP price in short-term: Ripple pays attention over the long haul, and not in three days, weeks or months
“I'm incredibly pleased to see how much traction people are seeing with it (XRP),” says Ripple CEO Brad Garlinghouse in an interview with Bloomberg while talking about the attraction the digital asset that facilitates instant payments between parties, is seeing.
He further shared how historically, there's been a lot of hype and experiments in the crypto ecosystem. But with XRP, they have been able to look at what they are doing with it, helping banks take advantage of what’s possible through these digital assets.
What About Swift?
But Swift is an “entrenched player” in the field of payments. As we reported, the 2019 report by the Association for Financial Professionals (AFP) underwritten by JP Morgan revealed that 80% of the organizations B2B transactions, cross border payments, still use Swift.
So, how is Ripple denting the business of Swift?
Swift defined cross-border payments and for the past four decades that’s how the system has been working but Garlinghouse says now “there's an opportunity to bring the system into the modern world or into the internet world where today a swift transaction can take days,” while using XRP can process a transaction in a few seconds.
But there are “many of you guys”
As we can see, today there are about 3,000 different digital assets that are trading daily.
“There are too many,” says Garlinghouse which is the case because “anytime there's a new market, there's a lot of people that run into that market and try to show that they can solve a problem.”
He reiterated his view of the crypto market overflowing with digital assets that “99% of all crypto probably goes to zero but there is that 1% that is focused on solving a real problem for real customers and is able to do that at scale and that's gonna be game-changing.”
And this he says will continue to grow significantly in the decades ahead.
And that’s why the Sell-offs Doesn’t Matter
Talking about the sell-off in the market and the price swings of the digital assets Garlinghouse shares, “We pay attention over the long haul, I don't think about three days or three weeks or three months.”
This journey, he says will be on for a decade, as such former SVP at Yahoo running Communications Division and President of Consumer Applications at AOL describes this as a “marathon and we're on kind of mile two.”
This is why he isn’t concerned about the price of XRP in the short term, but just on the digital asset to be most efficient in terms of speed and cost.
Also, volatility is always going to be there in the market but Garlinghouse is optimistic of the long-term journey, “there's a lot of bullish trends for the whole crypto ecosystem.”
He explains how it started with illicit use cases (Silk Road), then moved to a speculative bubble that he says we will continue to see till next year. Beyond 2020, Garlinghouse sees the focus to shift on utility.
But the whole market won’t grow or “live up to its potential,” and that is the reason “Ripple has been so focused on a specific customer, a specific problem and we've been fortunate to build a lot of momentum with that customer set.”
Let’s touch on Libra too
In its business plan to bring unbanked and underbanked into the financial system, Facebook has gone “direct to consumer.” But the challenge Ripple CEO says is the brand itself.
All financial systems and tools are built on trust, a factor the social media giant is in a deficit of. The company is facing a lot of regulatory scrutiny and questions are still yet to be answered. But the good news, Garlinghouse says is “key people like Mark Zuckerberg have said they won't go live until those things are clarified.”