During an exclusive interview with CNBC, CEO of Ripple, Brad Garlinghouse, says that they use the digital asset XRP because it is thousand times faster cheaper than Bitcoin transactions. Brad also says that Ripple is focused on solving cross-border payment problems making it massively efficient for corporates to use XRP as a part of that flow.
Brad continues to say that the Ripple has signed up with around 100 banks which uses xCurrent. He says:
“The first problem Ripple focused on is engaging with banks to solve the real world problems for them, so we have been successful in signing up over 100 banks using a product called xCurrent, and xCurrent allows 2 banks to settle in fiat and basically in real time.”
He further adds:
“Today that takes days and is very expensive and has very high air rate, as high as six percent. So that works when there are two banks working together already have fiat, if we wanted to go to the third bank where we don’t have liquidity or where we don’t have pre-funded account, thats what product like xRapid comes into play. xRapid uses XRP to fund real time liquidity so no longer do I have to prefund.”
He even says that there are around trillions of dollars parked around the world which is pre-funded between banks and corporates. By making those trillions of dollars efficient, Ripple will be making the entire global financial ecosystem more efficient.
When asked about when XRP will begin to be more useful towards institutions, Brad replies that Ripple launched xRapid as a beta product in late Q3 and early Q4 last year and launched their first customer on xRapid in late Q4 which continued by six more customers in Q1 this year.
The customers include big names such as Western Union, Money Gram, and Mercury FX which move a lot of money. Ripple has found that xRapid is saving the customers 40-70 percent compared to the existing tool from managing and spreading the liquidity around.
The CEO of Ripple says:
“So xRapid is doing exactly like we have thought, we expect to go into production without product at beta production at very very shortly, we have continue to move from a beta product to a production product to see more more banks, more more other financial institutions to get onboard and XRP will be used to facilitate this process.”
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