Asheesh Birla opens up about XRP token, xRapid, and xCurrent
The host of CNBC’s Cryptotrader Ran NeuNer who was earlier not convinced about the utility aspect of XRP token spoke to Asheesh Birla, Senior Vice President, Product Management of Ripple. The focus of the discussion was to discuss the utility aspects of XRP token and also other products built by Ripple for the banking system.
“XRP is an open distributed ledger system that anyone can use and it is decentralized. We are excited about it. We have a plan to further decentralize it. We have validators across the globe who validate our transactions,” said Asheesh Birla.
In reply to Ran NeuNeur’s question about use cases of the XRP token, Birla stated that the company felt really passionate about cross-border payments. Birla said that Ripple, across the years realized that specific cases of cross-border payments posed lot of challenges. Hence, this pushed the company to build a set of products that would contribute to the ease of process in the area of cross-border remittance.
Asheesh Birla also spoke about xCurrent, the first product built by Ripple that helped the financial institutions around the world to connect and communicate better, helped them send compliant information for them to comply with the local regulations and is doing really well in the market.
To another question about the feasibility of xCurrent, he replied:
“The main purpose of xCurrent is to facilitate communication but it did help transfer value for fiat currencies. That means non-crypto currencies. So, if you wanted to trade US dollars for Indian rupees, you could do that but it wouldn’t necessarily involve a digital asset like XRP.”
The Vice President also spoke about xRapid, which was built around solving the problem of liquidity. To explain the use case of xRapid, he cited the example of Mexico as a foreign country, stating that one can move money into Mexico in a matter of seconds using the product. It facilitates this service without having a local bank account there or pesos sitting in it. He explained the working of xRapid, saying:
“Let’s take the case that you send the system US dollars … And it converts to XRP, moves the XRP into Mexico and then a local exchange in Mexico converts that to Mexican pesos and payout. The whole process takes just a matter of seconds and is very efficient as compared to the conventional system today. It cuts down the amount of friction needed to open up accounts in new countries, having pesos and so forth. So, we are really excited about xRapid.”
Stressing the efficiency of xRapid, he said that traditional banks use a system called Swift that was created way back in the 1960s and is archaic in nature. Birla spoke about Swift saying that it is just a means of communication between the banks. It does not transfer value. Subsequently, he said that an error in such a case takes days to resolve using the Swift system, which is not in tune with the demands of modern e-commerce.
Image via Shutterstock
Join our Telegram group