Ripple CEO Explains Why XRP is Vital for Unbanked Migrant Workers’ Remittance Payments
Ripple is all about remittance. You probably know that already but the truth is that Brad Garlinghouse, the CEO of Ripple, has the mission to convince you that this is the truth. Why? Because either Ripple does this or its product will be nothing. With so many cryptos failing in the market, he would not be the first to fall.
In a recent interview, the CEO defended his viewpoint once more. According to him, XRP is very useful for the unbanked people living away from their homelands. He believes that a lot of (mostly poor) workers leave their countries and do not get access to banks in their new homes.
By being cut out from the financial institutions, these people have no ways to deposit money from their families and relatives back at their home countries and this can turn into a serious financial problem for them as sometimes they will have to pay a lot more to send this money which ends up being a not effective way to do it.
Giving the unbanked a better way to move & access money will fuel an entire new section of the gloabal financial community, and #xrp will make this possible. @bgarlinghouse on why xrp is so important for unbanked migrant workers across the world #ripple #xrp #xrapid #crypto pic.twitter.com/4D5xzHjfnn
— xrp mami (@xrp_mami) November 7, 2018
According to a recent survey used by the CEO of Ripple, there are two billion unbanked adults in the world, which makes them a very large population. A good part of these people is from developing countries in Africa and some in Asia. The CEO does not believe that you should way for others to create the infrastructure to bank them when they could have been using better ways, especially for international remittance payments.
The better way is, obviously, Ripple’s XRP. Ripple’s product is shown as the way out of this crisis. With the token, you could send money to whoever you want very fast, so people would have the funds to send to their families despite the fact that sometimes they are in war zones or other regions in which banking access is very bad.
During the interview, he affirmed that banks only want to serve customers while they are profitable, so if you are not profitable, you will simply be left out by the banks. As the costs of using the bank may exceed the income of these people, Ripple offers XRP as the solution.
This way, the CEO affirms, even minor workers would be able to send money internationally without having to spend a lot of money and this could create a huge global community for the unbanked. By using Ripple, you can send money without even needing an ID, all that you need is a smartphone and a good internet to make transactions quickly and at a very low cost, according to him.
As a way to cater to this community, Ripple is making several alliances in the world and one of the newest ones is with the Gates Foundation. The partnership seeks to offer worldwide payment systems for unbanked people all over the world and use the Interledger protocol for that.
Another important step of the company was to spread to the Middle East, a growing marketplace that makes up 35% of the migrant workforce. The company has set up shop in Dubai to work on the area and create new specific products for this population.
Ripple’s Legal Problems
It would not be fair to only say what the CEO of Ripple affirms. Despite all the potential of the third largest crypto community in the world by trading volume, Ripple and XRP are facing many issues, mostly in the United States.
Ripple wants to be a remittance service and wants XRP to be decentralized. However, many judicial processes in the United States are trying to label Ripple as a security instead of a utility token like Bitcoin. This could make some serious harm to the future of the company, which is why I said it was so important for Ripple to really be seen as a remittance company.
The lack of regulation of the crypto market has created a big trap for Ripple and XRP and, if the company is considered a security, this might have a huge impact. In any case, follow our blog for more reports on Ripple.