Ripple has gone shields-up after the Libra announcement as people speculate that this could inadvertently hurt Bitcoin and even Ripple, the company, and the cryptocurrency, XRP. The officials of Ripple have since put out statements and expressed their thoughts on how and if Libra could affect XRP and Ripple.
David Schwartz, the CTO of Ripple, put out a poll to get a feel of what people in the space thought of Libra and its Calibra wallet. The poll, as seen below, questioned if the Calibra Wallet will exchange funds with wallets that do not use Calibra.
Will Facebook's Calibra wallet exchange funds with accounts that don't use Calibra?
— David Schwartz (@JoelKatz) June 19, 2019
The poll’s “Don’t know” option yielded 50% of the votes, further explaining that most people still don’t have a clear idea about Libra and its workings. However, 31% of the users voted that it will not be possible for Calibra wallets to transfer funds to accounts that use Calibra, while only a 6% voted “Yes”.
Dilip Rao’s, the global head of Infrastructure and Innovation of Ripple, tweets show that Ripple is trying to clear the bad air and prove that Facebook’s Libra and Ripple’s XRP can coexist in the same universe while proving traditional payment methods are obsolete and primed for a change.
— Dilip Rao (@diliprao) June 20, 2019
Rao used Porter’s Five Forces to explain how Facebook’s entry and Ripple’s already existing infrastructure would benefit customers [indiviudal, SMEs, and institutions combined] while putting pressure on the banks and other related institutions.
This could be circumvented by using emerging technologies, like blockchain and cryptocurrencies, were a substitute for the existing methods, hence pushing banks and other payment processors like Western Union into a corner. Rao added that this would result in “heightened competition” which would ultimately benefit the retail /SME clients.
The interesting thing about the whole Ripple Vs. Facebook’s Libra is the P.R. experimentation that has been taking place. Ripple CEO Brad Garlinghouse’s appearance on Bloomberg to announce the rumored partnership between Ripple and MoneyGram came just a few hours before the release of Libra’s whitepaper. In addition, Garlinghouse also spoke at Brainstorm Finance 2019 and explained how Facebook’s announcement has helped potential customers consider Ripple’s products.
In a way, Ripple has its shields up and is trying to make the best of a bad situation.
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