Ripple CEO: Large Banking Institutions Will Eventually Have To Accept Digital Assets Advancements
The CEO of Ripple, Brad Garlinghouse, said that banks have several reasons to start implementing blockchain technology and cryptocurrencies. Garlinghouse said this during a conversation with Kara Swisher on May 20.
Garlinghouse Says Banks Would Eventually Embrace Cryptos
Garlinghouse explained that Ripple wants to work with companies and different regulators to improve cross-border payments. He stated that anonymous transactions that aim at avoiding the current regulations and authorities are not going to prevail. At the moment, regulatory agencies are trying to create clear regulatory frameworks in order to be able to control digital assets and avoid criminal activities and money laundering.
The CEO of Ripple thinks in a different way than the general investor that supports Bitcoin. He believes that banks are currently applying a very important regulatory framework that is important for society as a whole. He then said that he thinks that they are good at it and that blockchain and cryptos could help them expand even further.
Ripple is working with financial institutions in order to offer cheaper and faster cross-border payments. Using XRP will reduce costs and will make transfers more efficient between institutions. He said that Wells Fargo is currently working with distributed ledger technology (DLT), which is positive for the institution.
On the matter, Garlinghouse commented:
“99 percent of banks love what we’re doing because we’re democratizing something that’s controlled by a small number of banks, their competitors.”
At the same time, Brad Garlinghouse mentioned that the banking sector is facing a threat from the expansion and growth of new technologies.
Currently, one of the largest investment banks in the market, JP Morgan Chase, has released its own digital currency called JPM Coin and it works with a permission blockchain network called Quorum. Other banks such as Santander or BBVA are also investing in blockchain technology and have also partnered with Ripple.
XRP is currently the third largest digital asset in the market. It has a market capitalization of $16.56 billion and each XRP coin can be purchased for $0.392.