Ripple Executive Finds XRP Coin’s Value In Their Cross-Border Payments


In a webinar recently, the Chief Market Strategist for Ripple, Cory Johnson, sat down to speak about XRP and how their cross-border payments are impacting the rest of the industry. Their ability to disrupt this space, along with how they’ve managed to be one of the least-impacted coins of the crypto market’s drop, has kept them afloat. During the webinar, Johnson covered many important topics, including how the rest of the world is adapting to its use and what he thinks of the SWIFT system.

The first topic of interest was about the qualities that make XRP strong, and Johnson commented that “moving it across borders” where that value lies. It is a great example of the digital assets that reside on the blockchain, which helps to maintain the authenticity and security of the transactions. He added, “The World Bank said that the average cost of remittance was an all-time historical or low for humanity at 6.94%. The average business has a net profit margin of about 7% but the cost of moving money across borders is about 7%. That means the average business has no business in being global.”

The current system in place has a transactional error rate of about 6%, which Johnson compared to being like the loss of an hour a day in electricity. With the cost of the system and the delay of up to five days for each transaction simply doesn’t serve the needs of the public right now. Johnson has been continually vocal about the incumbent system that they are making over, calling the project “SWIFT Global Payments Initiative.” The implementation of this initiative will help with reducing costs and improving speeds.

This upgrade to Brad Garlinghouse, Ripple’s CEO, is much like adding a Ferrari shell to a Ford Model-T. He said, “Swift GPI is like putting a Ferrari shell on a Model-T engine. It’s a cosmetic upgrade on old infrastructure: messaging is still not tied to settlement, it’s unidirectional and can’t solve for liquidity.”

Bringing attention back to the way XRP benefits the industry, Johnson also spoke about how digital assets will play a major roll, though Bitcoin has multiple downfalls to consider. When the focus shifted to the clients that Ripple serves, he said, “Many of them are using XRP to do transactions across borders to lower their costs from 40 basis points to 4 basis points and from 4 days to 2 minutes. That can only be done using these digital assets or cryptocurrencies.”

For Johnson, Bitcoin’s worth is a mystery and its technology, poor. However, the public needs to be the ones that determine the actual value of digital assets. He noted, “Actually demonstrate it, it will develop a fundamental value. What that value is you’d have to figure out for yourself. I think that you know Bitcoin doesn’t work very well. We foresaw the company for us all that a long time ago.”

John believes that the investors of the industry are starting to see that Bitcoin isn’t an effective crypto asset, comparing it with the benefits and functionality of XRP. XRP manages to bring themselves up every single year, and is it being used more frequently than Bitcoin, which could be based on its on-ledger transaction value.

When speaking on Ripple’s relationship with XRP, Johnson clarified the nature for listeners, saying, “XRP is a cryptocurrency or digital asset that was created before my company was created. My company does own 60% of the XRP out there but there are lots of other companies using XRP as well it is not unique to our company.”

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