Ripple’s CEO Brad Garlinghouse spoke at the World Economic Forum 2019 which was held in Davos. Garlinghouse mentioned that Ripple is trying to change how the financial infrastructure has developed over the years and change it for the better.
Brad Garlinghouse said that understanding why blockchain should be used matters a lot. He added that a lot of companies refer to themselves as “blockchain company” and that they have no idea “what problem they are trying to solve” and for “which company”.
Garlinghouse continued that Ripple was neither a blockchain company nor a cryptocurrency company and that Ripple was a payments company that happened to use cryptocurrency to solve payment problems and provide a solution.
He also added that they use blockchain technology to settle transactions between banks and that some banks are perfectly happy with doing that with fiat via Nostro-Vostro accounts.
Moreover, Garlinghouse said:
“But there is an opportunity to fundamentally rewire how modern economic or modern financial infrastructure works and the pre-funding you have about ten trillion dollars pre-funded 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 can actually take that ten trillion dollar and use it for other purposes which is great for society’s it’s great for banking it’s great for the industry so that’s what we’re trying to rewire”
Edit Yeung, a partner at Startup 500, spoke about the use cases of blockchain and how it is trying to change the existing systems for good. She said:
“Ripple is actually doing really really well, not China yet but in like Japan and many Asian country where you know the banks actually understand what you guys are doing.”
Digital Nomad Investor, a YouTube user commented:
“Bitcoin will go the way of AOL, Blockbuster Video, Netscape, beepers, and flip phones, and Blackberries. It broke open the crypto space, and that was great, but it’s served its purpose and will fade into the background this year. Utility is the future of crypto.”