Ripple CEO speaks on Bitcoin scalability challenges, cross-border payments & more
Ripple CEO, Brad Garlinghouse, spoke about existing banking system, current state of cross-border payments and Bitcoin scalability challenges. The discussions took place on the Stanford Legal podcast.
Garlinghouse while taking about cross-border payments, he mentioned how base layer innovation can reduce the cost associated with it. He said, “That takes time and friction and any type of talk about friction is its cost. If we do it more efficiently, we can accelerate the global industries that we’re talking about.”
Even though we live in a world that is three decades into the Internet, Garlinghouse said that it is “amazing” that lots of transaction-based technologies have a central counterparty. He further adds saying, “That takes time and friction and any type of talk about friction is its cost. If we do it more efficiently, we can accelerate the global industries that we’re talking about.”
How’ Ripple trying to solve the problem?
Garlinghouse said, “… we sell technologies to banks that will allow them connect that we call RippleNet and that allows them to do cross-border payments in real-time at very very inexpensive fees.”
Ripple CEO on Bitcoin scalability challenges
There has been a lot of confusion regarding Ripple & XRP, so, Garlinghouse explained the exact use of XRP by Ripple. While speaking about it he said Ripple Labs build technologies on top of the XRP Ledger. He stated, “Some of our products are built a hundred percent using XRP, and some have nothing to do with XRP. You could use Bitcoin for some of the products we offer. The problem is, Bitcoin has some serious scalability challenges.”
He further explained his point with an example of buying a cup of coffee with Bitcoin. The transaction itself costs around $1.8 which means it would effectively double the price of the coffee itself. Moreover, the transaction process is time consuming and would only occur after 45 minutes or so.
He admits, “I am personally long on Bitcoin. I’m not trying to bash Bitcoin. I think Bitcoin is not going to be a panacea that some people thought it would be for many different kinds of transactions and instead you’re seeing specialize in kind of use case dynamics for different kinds of transactions.”
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