Ripple CEO Brad Garlinghouse Maintains That Ripple Did Not Issue Any XRP
Ripple CEO Brad Garlinghouse discusses Ripple during a Stanford Legal podcast, stresses that Ripple did not issue XRP tokens.
Ripple CEO, Brad Garlinghouse has maintained his claims that Ripple did not issue the XRP tokens. He made this statement when he recently appeared on the Stanford Legal podcast to speak about Ripple, XRP and the blockchain.
Ripple different from XRP
In the podcast session, Garlinghouse first talked about the difference between Ripple and its tokens XRP. He made it clear that Ripple did not issue XRP.
He noted that XRP was an open-source, decentralized technology, adding that some of the creators of the Ledger worked on Bitcoin [BTC] before they did on XRP.
He added that the developers saw some of the scalability problems the Bitcoin is likely to have, from an energy consumption cost. They wanted to build a better digital asset to solve some of these problems.
Cryptocurrency payment not needed in G20 countries
When asked about the possibility of cryptocurrencies replacing fiat currencies, Garlinghouse was of the view that he doesn’t see it happening in the next decade. He added that fiat currencies work very well in the top economies across the globe.
He stated that as customers, it made no sense for people in the G20 countries to make use of Ripple as a form of payment. According to him, the U.S Dollars is doing perfectly as a means of payment right now.
Buying coffee with BTC is a dream for many crypto enthusiasts, but Garlinghouse believes that this dream will not come to fruition anytime soon.
Cryptocurrencies perfect for Non-G20 Nations
When quizzed about the best places that cryptocurrencies can be used, he replies that it is economies where central banking systems are not properly designed or functioning have weak currencies.
He pointed out that Venezuela is a very good place for cryptocurrencies to be adopted right now.
He also stated that in an economy facing hyperinflation, it would be better for consumers to hold a cryptocurrency as a store of value since they have the potential to appreciate (or remain flat) without fear of inflation.
Ripple Net inexpensive
If you’re sending money across oceans it ends up being really slow and really expensive. Garlinghouse discussed the ability of Ripple Net to conduct cross-border payments in effectively real-time at inexpensive rates.
He stated that Ripple is using digital assets to solve a cross-border payments problem.
Ripple not a security
There have been concerns that XRP is considered a security by the U.S SEC. the commission had earlier cleared the air that Bitcoin and Ethereum are not securities but nothing has been said concerning XRP.
Garlinghouse stated explicitly that Ripple didn’t issue XRP shows that the cryptocurrency is decentralized.
Ripple CTO, David Schwartz, further explained the decentralized nature of XRP ledger. He noted that XRP doesn’t make use of proof of work like ETH and BTC, thus it is impossible for a few people to control the network.
The fact that Ripple is slowly relinquishing its positions as UNLs is another indicator that XRP ledger is becoming more decentralized.