Cryptocurrencies are not going to replace all fiat currencies: Ripple co-founder
Co-Founder of Ripple Labs Inc., Chris Larsen, recently spoke at the CFCon USA 2018 sharing about the blockchain technology revolution, what Ripple is trying to do, what changes it’s trying to bring and how there’s no future without globalization.
While speaking, Larsen called blockchain as the most hyped technology that’s available in the present date. Like any other hyped projects, some are bound to fail. He added, “I think we already know cryptocurrencies are not going to replace all fiat currencies but they’re going to be supplemental.” He added,”… and you know we’re not gonna be buying our avocados you know on IBM’s blockchain, right?..but, it may improve some things…we’re not gonna tokenize everything…we’re gonna tokenize things where it solves a problem.”
Despite the hype and everything, Larsen believes that something fundamental is happening due to all this. Moreover, Fintechs have received the maximum attention due to this. According to him, it is the first time that they have become truly “global” and it represents a final step on globalization.
Larsen explained that globalization is not complete without three key elements – data, goods, and money. According to him, the world has already seen globalization in terms of data, and goods but not money. While speaking about the third key element, Larsen mentioned that it in terms of money world is still stuck in the 70’s or before, holding the entire world back and also wasting trillions of dollars.
He went on to give an example of the problem by stating that even if people want to send 50 Euros, they cannot do that without being charged with heavy fees. Adding to it, he said that Bill and Melinda Gates Foundation believes that 2 billion people in a developing world must be able to send 50 cents cross-border to be really participating in the global economy. He added that such a participation is not possible with a system that is built in the 70s.
Larsen concluded by saying that the main requirements for any blockchain to a part of the new global interoperable ecosystem is, to be decentralized,open source, secure, be cost-effective,have a settlement predictability, have a high throughput, and consume less energy.
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