Ripple Looks To Take Over SWIFT As It Continues To Gain Market Share
The CEO of Ripple, Brad Garlinghouse gave an interview to Bloomberg TV, in which he reflected on various aspects of the blockchain technology and cryptocurrencies, mostly by comparing them to the traditional financial systems.
Garlinghouse reassured that Ripple is looking to overtake SWIFT, not work with them.
Ripple is solving real-world problems
Garlinghouse stated that every digital asset is going to be valued according to its real-world problem-solving capability, and went on to talk about Ripple’s XRP usage by the financial institutions.
According to him, RippleNET is doing well in solving problems faced by financial institutions, as the use of XRP has transformed cross-border payments and made them much more cost efficient.
When asked about his company’s relation to SWIFT (Society for Worldwide Interbank Financial Telecommunication), Ripple’s CEO denied all rumors of any form of partnership. However, he didn’t fail to mention how SWIFT unveiled their opinion that blockchain doesn’t have the potential to overtake traditional banking payments system.
“We’ve got well over 100 of their customers saying they disagree” declared Garlinghouse, referring to more than 100 financial institutions which are already or have signed a partnership deal to begin using Ripple’s technology in various payment services.
His words were that Ripple wasn’t trying to work with SWIFT but overtake it as the leading banking network in the world, because traditional systems were produced decades ago, and haven’t really evolved since.
The ongoing problem with legislation
Brad Garlinghouse also touched the topic of regulations, as it is a burning topic for his company which is being prosecuted for over $167.7 million for selling unregistered securities. Ripple is trying to move the class action lawsuit against the company from San Mateo Superior Court to the U.S. District Court of the Northern District of California.
After praising the legal framework devised by Singapore’s regulators, he detected the problem with their US counterpart, which, according to Garlinghouse, still doesn’t have a clear set of rules for cryptocurrency businesses to act in accordance with.
He sees that problem as the main obstacle for wider adoption of cryptocurrencies and institutional interest in crypto assets.
The growth potential
The CEO of Ripple was also asked about what he sees as the main factors for the future rise in the price of the XRP coin.
He explained that XRP, with its distributed ledger network, enables much quicker transactions than the traditional systems, while, at the same time, being capable of efficient and cheap micropayments, and that is, according to him, the main cryptocurrency’s growth potential.
Garlinghouse also compared XRP with the number one cryptocurrency in the world, saying that Bitcoin’s blockchain is 1,000 times slower and 1,000 times more expensive than XRP’s, also mentioning the XRP’s capability to scale as a major marketing point of the network.
Ripple’s CEO also revealed that he believed 2018 to be the year of the wider adoption of cryptocurrencies.
However, since we are in Q4, and the overall market capitalization is still far from its all-time high of around $800 billion, obviously, his prediction didn’t hit the mark.
However, we can say that, since Ripple is said to be signing two new contracts with financial institutions every week, 2018 wasn’t as bad for Garlinghouse’s company as it was for the rest of the market.