Ripple has been making a lot of headlines these days due to various achievements and massive efforts that the firm is making towards pushing the adoption of the digital asset XRP and also to boost the whole XRP ecosystem.
XRP could be the ideal solution for banks that plan to enter the new digital era
Now, it’s been just revealed that Ripple CEO Brad Garlinghouse believes XRP may turn out to be the best solution for central banks that are currently looking to usher their currency into the digital age.
During a brand new interview on The Scoop podcast, Garlinghouse said that as central banks begin to launch their very own coins, sourcing liquidity and compatibility between currencies could turn out to be quite challenging.
Garlinghouse said that this is the reason for which Ripple is pushing XRP as a bridge asset to power cross-border transactions and exchange one currency for another.
“The whole point of XRP in our context is to be a bridge asset. So if you’re using a US dollar stablecoin, you still need to get to a Brazilian Real stablecoin or Australian stablecoin,” he said.
He continued and said: “The point [of Ripple’s efforts] is to enable a lot of efficiency and liquidity between XRP and the US dollar, and XRP and the Australian dollar. You just have to worry about one bridge as opposed to liquidity between every pair. So just using stablecoins doesn’t really solve the problem that XRP is solving. XRP, as an extremely efficient, extremely scalable blockchain, is ideally suitable for that.”
More than that, he also highlighted the fact that Ripple is exploring more ways to breach out of the cross-border payments realm in the future.
“We will certainly enter other vertical markets, and we won’t just be a cross-border payments solution… We want to help customers grow and scale their business. On-Demand Liquidity does that. Line of Credit does that. We will certainly look at verticals, and maybe it’s insurance. Maybe it’s trade finance,” he said.
We suggest that you check out the complete podcast in order to see what more he had to say.