Brad Garlinghouse, Ripple CEO expects dozens of banks to be using Ripple XRP by the end of 2019, considering its low cost and transaction speed. Even though he is optimistic about the future of both Bitcoin and Bitcoin Cash, he thinks Ripple is much faster and cheaper as compared to Bitcoin.
San Francisco-based blockchain Ripple is right now the third best cryptocurrency after Bitcoin and Ethereum by market capitalization. However, it has so far not disclosed exactly how many of its customers use xRapid, which allows financial institutions to use its in-house cryptocurrency coin XRP to improve transaction speed and lower liquidity costs.
Ripple’s product xRapid is aimed mostly at financial institutions functioning in emerging markets since payments into these markets usually require pre-funded local currency accounts. The xRapid system enables the conversion of fiat currencies into XRP in just four seconds. In fact, Western Union and Moneygram have already begun testing xRapid.
Garlinghouse is of the opinion that not more than 1% of the more than 1,500 digital currencies that are active today will continue to exist in 10 years from now. He also said that he is unsure of the merits of many other ICOs and blockchain startups, and is trying to figure out if they will be able to solve real-world problems.
Ripple XRP is here to stay
I’ve publicly stated that by the end of this year I have every confidence that major banks will use xRapid as a liquidity tool. By the end of next year, I would certainly hope we’ll see an order of magnitude – dozens. But we also need to continue to grow that ecosystem, grow that liquidity and it all comes back to if we’re solving a real problem for real customers.
The Bitcoin blockchain is slow
The Ripple head made heads turn last week when he said that Bitcoin’s influence on the prices of cryptocurrency would soon come to an end. He expressed his thoughts more freely in the interview with CNBC.
The Bitcoin blockchain is quite slow and people originally thought it would solve a payments problem. But when you have an asset like XRP that’s a thousand times faster and a thousand times cheaper on a per transaction basis, Bitcoin can’t really compete on that level. And XRP transactions cost a fraction of a penny and settle in 3 seconds. Comparatively, you have Bitcoin taking 45 minutes, sometimes hours to settle a transaction – and can cost $3 to $30.
That might be cheaper than the alternative in today’s banking system but it’s not really an internet of value, a true step forward in how we can allow value to move like information moves today.
The future of Ripple XRP seems promising as of now. Whether Ripple will be able to overtake Bitcoin and Ethereum needs to be watched.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]