Ripple’s [XRP] CEO Brad Garlinghouse’s take on the future of digital age

Ripple [XMR] has declined just like every other coin with it market capital at $29.5 billion. The latest news that involves Ripple is the recent interview with its CEO, Brad Garlinghouse in the Money20/20 Asia fireside chat.

Bradley Kent Garlinghouse

Brad has been a leader all through his career: former CEO and Chairman of Hightail, President of Consumer Applications at AOL for 2 years, Senior Vice President at Yahoo!, running its Communications Business which included the Homepage, Flickr, Yahoo!Mail and Messenger. He currently connects the statistics regarding the remittance trends and prices to ensure Ripple’s goal of establishing an Internet of Value.

At the interview, he quoted as he outlined his vision for Ripple’s future:

“A New Payments System for the Digital Age”

Dilip Ratha

Before Brad, Dilip the World Bank’s lead economist for migration and remittances spoke about the trends and gave some insights about their future costs.

He stated:

“A critical sustainable development goal of the World Bank is to lower the cost of remittances globally from 7 percent to 3 percent by 2030.”

From the Interview

Brad said, they will inevitably fail as a business if they are not able to reduce the fee for remittance payments by 300 base points by 2030. On another note, if they succeed, it is not about 300 basis points; the talk is about 30 points for the remittance payment cost. The statement is very bold and the result of this could be exponential to the global economy. If his vision turns into reality, a remittance payment of 200 dollars would cost 60 cents instead of approximately $14 on an average.

Brad goes on to address the need for continued adoption of Ripple solutions by financial and payment sectors in order to remove friction from global payments. This fact aroused a critical point which said: Digital assets could work together with financial institutions rather than disrupt them. Global payments and banking won’t be modified from the outside; they will be changed from within.

Audience questions answered

What do you say about the criticisms regarding Ripple and XRP?

The first focus was on the digital asset volatility and whether that prevented widespread adoption for cross-border payments.

Brad countered:

“We’re talking about three seconds of volatility risk when using XRP for cross-border payments. The reality is you’re exposed to more volatility when doing a traditional transfer with fiat currencies, and that takes several days.” This referred to the time when financial institutions used xRapid for cross-border payments.

Brad’s conclusion”

“Coming back to reality, the team is working with decentralized technology. The worst case scenario, if Ripple goes away, which we hope doesn’t happen, the system is designed such that the XRP ledger will continue to exist.”

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