Ripple's CEO on XRP Cryptocurrency and Its Prospects
November 20, 2017
In a recent interview with the Fortune Brad Garlinghouse answered numerous questions concerning his company. For example, when asked if Ripple and XRP competed with other blockchains and digital currencies, he said he did not think they were rivals. Brad explained that at some point Ripple had no blockchain because it was not a bitcoin. In 2017, users realized that there will be no common cryptocurrency. There are vertical solutions which XRP uses to deal with payment problems, with Etherium focused on smart contracts and Bitcoin aimed at storing value. That's why all of them are no competitors to each other.
The interviewer's next question was about the reasons why banks need XRP. Garlinghouse explained that the matter is in its liquidity, XRP is a valuable asset. He noted that the possibility of using Ripple for financing liquidity has certain advantages, for example, it sometimes takes Bitcoin up to 4 hours to complete a transaction, while XRP needs no more than 4 seconds. He also explained that the Ripple Net Accelerator program had been created for the distribution of XRP among banks. It was backed with more than $300 million and the tasks of this investment were the accelerated distribution of these technologies.
Next, he commented on Ripple's pricing model, which consists of 3 parts: a commission for transactions, a license for software and a professional service. He also expressed his attitude to the fact that central banks can introduce their tokens. Brad Garlinghouse replied that there was nothing to worry about, as after communicating with dozens of central banks he was convinced that they would not give up the fiat money.
The following questions were about his relationship with other Ripple's co-founders and the amount of money the company churns out. Brad replied that Chris Larsen was fully involved in the company's activity and he communicated with him every day, while he hardly ever got in touch with Jed McCaleb, but had an idea of what Stellar is doing. As for his earnings, he kept silent, but said that the balance was favourable and it allowed of investing in products useful to the company. In addition, he noted that part of XRP were being sold, otherwise the balance would be in negative values. XRP is a strategic tool for investing in the ecosystem, thanks to which the company has the opportunity to hire the best engineers in the world and invest in the technology and the platform.