During the World Economic Forum held at Davos, Switzerland, Brad Garlinghouse, CEO of Ripple commented that he believes Bitcoin and XRP are one in the same.
While on stage during a CNBC panel for the future of crypto, Garlinghouse stated that he believes Bitcoin could possible solidfy its statues as a strong store of value over time. Although, when it comes to his stance on making payments, XRP is far more scalable then Bitcoin.
“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.”
Garlinghouse further exclaims that Ripple is currently developing ways to transform the speed and cost of cross-border payments to transform the current financial climate.
“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.
Garltinghouse also believes that crypto and blockchain technology will have an immense impact on financial institutions when it comes to changing their business models.
“Those are what we typically call those big money center banks. Citibank is actually the largest of all of them, and they represent about 13% of global liquidity management. They make about $8 billion a year in profits from those cross-border transactions. That is going to change. We can debate if Ripple will be successful, but as these guys have discussed, that will change.”