Ripple: Our Clients Prefer XRP Over Fiat for Cross-Border Transactions
Ripple’s head of product just gave a wide-ranging interview with CNBC’s Crypto Trader.
The one-on-one discussion tackles the use cases of XRP and Ripple’s overall suite of software solutions, including xCurrent and xRapid.
When asked why financial institutions would risk transferring value using xRapid, which utilizes XRP, Asheesh Birla said the overall costs and volatility involved are far less than fiat.
“We asked our customers – and using xRapid, the volatility that our end-customers are using, the xRapid end customers are using, is only a few seconds. And so we asked them, ‘A few seconds of XRP volatility – how do you feel about that?’
And overwhelmingly they said, ‘Listen, I will take a few seconds of XRP volatility versus holding Mexican pesos for weeks or months, like I have to. Because the volatility of a few seconds of XRP versus the volatility of a week holding a local currency is a huge difference. They’ll take the seconds in XRP any day.”
According to Ripple, smaller financial institutions and startups are more likely to see significant savings by using xRapid for cross-border transactions. For example, Western Union recently announced that its tests with XRP did not save it any money compared to its existing business model.
Birla also compared XRP’s utility to Bitcoin’s and responded to criticism that XRP is too centralized due to Ripple’s direct involvement with the ledger and the fact that it owns 60% of the total supply, with 91% of that investment locked in escrow.
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Comments 2
Bitcoins and Gravy (@BitcoinsNGravy)
Aug 25, 2018XRP will probably do well.
Who cares if it’s inherently evil?
Just buy a bunch, hodl it, then sell it when it’s high and use the money to help start an organization that helps people live better lives.
Or use your XRP wealth to start a campaign to crush Ripple Labs.
Just get creative with it and quit the whining you big friggin babies.
: )
Cory Guidry
Aug 25, 2018And many of us want a real cryptocurrency with a fair plan of distribution and much less central control than XRP. :> We know Ripple timed their 2/3 supply lockup announcement during the bull run almost perfectly just to generate so much hype and have a bigger presence in the space. A real deflationary cryptocurrency with a good distribution doesn’t start out with one entity owning 100% of the supply and selling, handing stakes to sources important to them, keeping the majority of it for themselves, and etc. So those are a couple of thongs XRP won’t solve, and neither will they solve scarcity as they’ve also stated themselves that theu want to keep inflation. They’ve hardly kept any attributes of a cryptocurrency, it’s basically a digital FIAT positioning itself for a reset when other currencies die, and if XRP succeeds, we’ll just repeat the same trend of going up and up until we rrach a peak and decides to die on a future generation. XRP, IF it somehow succeeds, wilk also widen the gap between wealthy and poor with the way they’ve conducted the distribution. With the elites they create, fake markets shall continue to be something to be worried about as people don’t realize they’re sitting on an asset that’s destined to continue to devalue just because somebody wants to retain passive income and be a parasite off of the world.