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Brad Garlinghouse, CEO of Ripple, does not believe that Bitcoin, XRP or other cryptocurrencies will replace local currencies such as the dollar, the euro or the Chinese yuan. The environmental conditions were in his view not yet ready to be suitable for the "masses".
Garlinghouse describes in an interview to "The Economic Club of New York" that Bitcoin or XRP will not serve in the next period as a replacement for classic Fiat currencies. He sees the use cases for the practice mainly in cross-border payments justified, as crypto currencies in this area are clearly superior to traditional Fiat currencies.
He also states that in the near future, people will not pay for goods in the supermarket or services with digital assets (freely translated):
XRP, in my opinion, and really every crypto - I do not think the use case is a consumer use case today. I imagine a certain percentage of the people in this room stopped by Starbucks before they came this morning. And you had no problems paying.
You used your Visa card. Maybe you had dollars in your pocket, I do not know. But it worked. People will not adopt a new thing unless it helps you in some way.
Cryptocurrencies could be used in some third world countries that lack access to finance. Above all else, cryptocurrencies could solve the problem of the different valency of fiat currencies (freely translated):
There are markets that have already lost control of their currency where the transaction cost for a Visa transaction is not 150 basis points or 200 basis points. There are 800 basis points.
Garlinghouse sees in it, among other things, the current developments of Facebook's own project Libra justified. Facebook has portrayed Libra as a kind of fiat currency in its white paper, which of course is a thorn in the side of many governments worldwide. Nevertheless, the crypto payment platforms are growing worldwide, which ensure a steadily increasing adaptation of Bitcoin and Co. There are many apps, such as Flexa or Wirecard, that enable you to pay for goods or services in participating shops within a few clicks within the app.
Ripple is currently pushing ahead with the further adoption and expansion of XRP through partnerships with wallet provider BRD and startup Vega. This is intended to reach new users and develop markets. Although the Vega platform is currently still under construction, it offers access to the wholesale market, which is worth several trillion worldwide. Ripple seeks to be present in key markets early through smart investment decisions and has a strong network of affiliates. It remains to be seen whether XRP can compete with other rivals such as Stellar Lumens .
By
Marcel Knobloch
18th October 2019
