It is presently the second day of the World Economic Forum 2019, where many major players in the financial sector are speaking on their progress as the event highlights globalization. Brad Garlinghouse, the CEO of Ripple, had the opportunity to speak, where he discussed the platform’s goals of changing the infrastructure of the financial world, and improve upon it.
The key, as Garlinghouse believes, is to understand why blockchain technology is a key component to businesses. He said that there are many companies that call themselves a “blockchain company,” but they have no direction on what they are trying to fix or what company they are doing it form.
Ripple itself is not a blockchain company or even a cryptocurrency company. Garlinghouse says that it is, at its roots, a payments company that made it possible to use cryptocurrency as a solution for payment problems.
He also noted that the blockchain technology they apply is for settling the transactions between banks. Presently, there are some banks that do the same thing with fiat currency through Nostro-Vostro accounts. Still, Garlinghouse expanded on these ideas, saying,
“But there is an opportunity to fundamentally rewire how modern economic or modern financial infrastructure works and the pre-funding you have about ten trillion dollars pre-funded banks around the world in order to enable cross-border payments. If you could take advantage of crypto liquidity to fund real-time payments, you can actually take that ten trillion dollar and use it for other purposes which is great for society’s it’s great for banking it’s great for the industry so that’s what we’re trying to rewire.”
These comments opened the door for others to speak on the benefits of the blockchain, the other use cases, and how the existing systems are being shaken up with its inclusion. Edit Yeung, a partner at a Startup 500, said,
“Ripple is actually doing really really well, not China yet but in like Japan and many Asian country where you know the banks actually understand what you guys are doing.”
A YouTube user took this opportunity to get involved as well, first bringing up the way that he believes Bitcoin will go before bringing the focus back to what path he thinks this industry will ultimately take. Digital Nomad Investor said,
“Bitcoin will go the way of AOL, Blockbuster Video, Netscape, beepers, and flip phones, and Blackberries. It broke open the crypto space, and that was great, but it’s served its purpose and will fade into the background this year. The utility is the future of crypto.”