The CEO of Ripple, Brad Garlinghouse has spoken at the World Economic Forum this week in Davos, Switzerland where he discussed many topics including the potential that cryptocurrencies have for the future to improve the international economic space. In a discussion panel on the future of cryptocurrency, the CEO went on to explain that there are high chances that blockchain technologies will improve the conditions under which social, banking and industrial relations operate. Garlinghouse said:
“There is an opportunity to fundamentally rewire how modern financial infrastructure works in the pre-funding. You have about $10 trillion pre-funded to 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 could actually take that $10 trillion and use it for other purposes, which is great for society. It’s great for banking. It’s great for industry. So that’s what we’re trying to rewire. We’re lucky to now have about 200 banks that have signed up. We’ve got a long way to go”
The Ripple head later commented on the cultural development of blockchain technologies, saying that there is second to none. Furthermore, he also says that these unusual situations have been commonly been covered vigorously by the media that they have generated a bad image of the overall crypto space. As reported by Ethereum World News, in order to promote adoption, their image needs to be fixed as Garlinghouse says:
“I think many people in the world – not just regulators – they hear the word ‘crypto’ and their brain goes immediately to Silk Road and illicit, illegal activities. And you have to kind of bring them up to speed on real use cases and real utility that’s actually good for governments, good for banks, that can be leveraged.”
XRP and Bitcoin
In addition to this, Garlinghouse also discussed the leading cryptocurrency, Bitcoin. The CEO of Ripple pointed out that due to its characteristics, it is very likely that in the future it will be considered a digital store of value instead of an actual currency.
In comparing Bitcoin with XRP, Garlinghouse is confident that the technology improves Bitcoin in terms of scalability and costs. Nevertheless, he did admit having money in the leading cryptocurrency saying:
“If you take Bitcoin as it exists today as a static thing, the scalability problems and proof of work as a model have some real significant limitations. There’s lots of people trying to improve that. Maybe they’ll be successful. Maybe they won’t. I’m not prepared to say Bitcoin goes to zero. I still own Bitcoin partly because, as Glen describes, it may become just a store of value.
However, at Ripple, we build upon a technology called XRP because it’s extremely scalable as compared to Bitcoin. It’s extremely low-cost and extremely fast relative to how Bitcoin works.”