Ripple CEO doesn’t expect early demise of fiat currencies

September 07, 2018
Chris Wheal

Brad Garlinghouse, CEO of Ripple: Pic courtesy of Ripple

Ripple’s chief executive Brad Garlinghouse has recently offered his views on a number of cryptocurrency-related topics and says he doesn’t expect cryptocurrencies to supplant fiat currencies within the next decade. He added that fiat currencies still work very well in the world’s top economies.

Garlinghouse believes that it makes no sense for consumers in the G20 countries to make use of Ripple as a form of payment as the US dollar continues to be perfectly adequate for the purpose. So while buying a coffee with bitcoin (BTC) is a dream for many crypto enthusiasts, he doesn’t expect it to be realised anytime soon.

However, Ripple’s CEO regards cryptocurrencies as perfect for non-G20 nations. This applied particularly to economies where central banking systems are poorly designed or where the national currency is weak. Venezuela is among the countries where it would be good for cryptocurrencies to be adopted.

Garlinghouse also suggests that for an economy beset by hyperinflation, it would be better for consumers to hold a cryptocurrency as a store of value as they have the potential to either appreciate or remain flat without fear of inflation.

Clarity on XRP

A guest on a recent Stanford Legal podcast, Garlinghouse also spoke about Ripple, XRP and the blockchain, addressing the difference between Ripple and its tokens XRP. He made it clear that Ripple did not issue XRP.

He stressed that XRP is an open-source, decentralised technology, adding that some of the ledger’s creators worked on BTC before they did on XRP. A number of developers recognised various scalability problems likely to arise with BTC from an energy consumption cost and wanted to build a better digital asset to solve some of these problems.

Garlinghouse also went on to address concerns that the US Securities and Exchange Commission (SEC) regards XRP as a security. While the Commission clarified that BTC and Ethereum (ETH) were not securities, it had not addressed XRP. He stressed that as Ripple didn’t issue XRP it showed that the cryptocurrency is decentralised.

He also discussed Ripple Net’s ability to conduct cross-border payments in effectively real-time at inexpensive rates, stating that Ripple is using digital assets to solve a cross-border payments problem.

A word from the CTO

Ripple’s chief technical officer (CTO), David Schwartz, also explained the nature of XRP ledger. As XRP doesn’t make use of proof of work like ETH and BTC, that makes it impossible for a few people to control the network.The fact that Ripple is slowly relinquishing its positions as unique node lists (UNLs) further indicates the XRP ledger is becoming more decentralised.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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