Ripple CEO Says Multiple Banks Will Use the Cryptocurrency Next Year
In many ways the rise of cryptocurrencies has been seen as an anti-bank movement. However the CEO of one crypto startup says he expects that will change as institutions begin utilizing the technology. According to CNBC, Ripple CEO Brad Garlinghouse believes that “dozens” of banks will be using Ripple’s product by the end of next year.
If you’re not aware, Ripple is a blockchain-based company that utilizes a crypto coin called XRP to make fast and affordable transactions. In fact, Garlinghouse explains that XRP is 1,000 times faster and 1,000 times cheaper than Bitcoin transactions. As a result Ripple has convinced brands like Western Union, Moneygram, and others to test their xRapid beta product. Using xRapid, businesses can send money in their local currency, have it converted to XRP, and then reconverted to whatever currency is needed at its arrival point. All of this happens in about four seconds. Meanwhile another Ripple product, xCurrent, does not require the use of any cryptocurrency but has also been used by some banks. Now Garlinghouse thinks that more banks will be making the switch and moving to xRapid instead.
Speaking to CNBC, Garlinghouse shared his excitement for the xRapid product and the potential it has as the company takes it out of beta. He told the network, “I’ve publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool.” He went on to declare, “You know, by the end of next year, I would certainly hope that we would see you know in the order of… dozens.”
Were Garlinghouse’s hopes to become reality, it would not only be good news for Ripple but also for their XRP token. With XRP currently trading at around $.67, it stands to reason that greater usage at various institutions and companies would cause the value to rise significantly. That said, Garlinghouse warns that predicting such things can be difficult, saying, “I don’t know how to predict the price of XRP, I wouldn’t dare try. We’re one player in the XRP ecosystem, but there are other players as well.”
Beyond the Bitcoin true believers, Ripple has proven to be one of the most talked about cryptocurrencies on the market, namely due to their multiple business models. While Ripple also has the ability to aid international transactions without the use of cryptocurrencies, it seems that the company is still pushing tokens as an even better solution. As a result those interested in the crypto space will certainly want to keep an eye on Ripple, xRapid, and XRP.