Ripple SVP Asheesh Birla Sits Down with CNBC's Ran NeuNer to Discuss Products
CNBC’s Ran NeuNer was supposedly never convinced of the XRP token’s usability. To get a clear understanding of how it serves as a use case, NeuNer supposedly sat down with the SVP of Ripple’s Product Management, Asheesh Birla to assess its token as well as other products offered by Ripple Labs, as per an online report.
XRP Gradually Becomes Decentralized
Ripple has been criticized for being centralized and a popular argument is that Ripple and the XRP token are different, with the former being centralized and the latter, decentralized. Other investors have made the case that some centralization is needed to initiate a decentralized protocol.
As per Birla:
“XRP is an open distributed ledger system that anyone can use, and it is decentralized. We have a plan to further decentralize it. We have validators across the globe who validate our transactions.”
XRP’s Use Cases and Other Ripple Products
In response to NeuNer’s doubts on the XRP token’s use cases, Birla shared that it has the ability to support cross-border payments, which was established due to the increased number of challenges that currently exists.
The duo’s discussion did not simply stop at Ripple’s token as NeuNer felt it was necessary to question some of the products available to date. In particular, Ripple’s first product xCurrent was broken down in which Birla said, it “facilitates communication” and further “helps transfer value for fiat currencies.”
An example was given by the Senior Vice President, who shared, “If you wanted to trade US dollars for Indian rupees, you could do that, but it wouldn’t necessarily involve a digital asset like XRP.”
xRapid to Solve Liquidity Concern
While xCurrent initiates communication among the parties involved in a transaction, Birla claims Ripple’s xRapid as a solution that can possibly resolve liquidity concerns. He shared another example which involved moving XRP into Mexico – concluding that it would reduce friction and speed up the entire transacting process.
Here’s as per Birla’s quote:
“You send the system US dollars […] In coverts to XRP, moves the XRP into Mexico and then a local exchange in Mexico converts that to Mexican pesos and payout. The whole process takes just a matter of seconds and is very efficient […] It cuts down the amount of friction needed to open up accounts in new countries.”
Ripple’s claim of working towards further decentralizing the XRP Ledger is accurate. Earlier this month, the firm proclaimed as providing a “frictionless experience” in transferring funds globally, announced that it now only supports 48 per cent of Validators on their Unique Node List (UNL). In particular, Ripple only operates 10 out of its 21 nodes, which shows that they are starting to reduce their control and bringing in more third-party validators.
What are your thoughts on the XRP token’s decentralized stance? Share in the comment box below.