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XRP trading is a “chicken and egg” problem, SWIFT has no fans in the Middle East, states Ripple’s Dilip Rao

Ajay Narayan

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XRP trading is a "chicken and egg" problem, SWIFT has no fans in the Middle East, states Ripple's Dilip Rao
Source: Unsplash

Blockchain technology and its accompanying umbrella known as DLT have been cited as one of the most revolutionary creations of recent times. They have emerged as disruptive and innovative technologies, a strategy used by Ripple to great effect.

Dilip Rao, Ripple’s Global Head for Infrastructure Innovation, appeared on a panel discussion at the Global Islamic Economic Summit, wherein he spoke about innovation in the Financial Technology space. He also offered his opinion on SWIFT, the existing incumbent in cross-border payments and Ripple’s biggest competitors.

He stated:

“I think generally innovation is held back by your legacy systems and I think sometimes if a legacy system is so old that you want to throw it in the in the in the dump, you don’t have to worry so much about what you’ve got you just say I’m going to dump this I’m going to go to the new shiny thing.”

Rao stated that a lot of “Europeans and Americans” are still “loving and tending to their legacy systems”, which is why they don’t let go of them. However, in the Middle East, he stated that he has observed an “aspiration” towards innovation.

Even as the cryptocurrency space is pushing the envelope for what is possible, a majority of investors are utilizing them to “make a quick buck”. When asked about the general state of the cryptocurrency market, and the reasons they are utilized like this, Rao mentioned it as a “chicken and egg” problem. He went on to say:



“You have to create a marketplace. Right now we have 150-200 exchanges around the world that trade XRP. A lot of it is, as you say, very shallow trading by individuals and that is not the use case that we are pursuing.”

The use of XRP that is being pursued by Ripple is as a financial asset for bridging the gap of liquidity. Rao stated that it did hurt the space. He also spoke about institutional investors, stating:

“In this last quarter the bulk of XRP sales were institutional investors. As this transitions away from retail to institutions, we’ll start to use it for wholesale financial usage that’s when the turning point will come.”

The executive also mentioned that this was the only region in the world where SWIFT does not have any fans. He stated that the region recognized that there was no need for a reliance on a centralized hub and spoke architecture. He went on to say:

“Where there’s 50% of trade happens within ASEAN, they don’t need to use a global platform to do that if they can run it on a peer-to-peer basis. I think strategically what DLT offers this part of the world is very important.”





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Ajay Narayan is a full-time journalist at AMBCrypto. He has majored in Economics, Political Science and Sociology. His interests are inclined towards writing and investing in cryptocurrencies.

Ripple

Ripple focused on driving RippleNet growth and increasing institutional adoption, claims Senior VP of Marketing

Akash Anand

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Ripple focused on driving RippleNet growth and increasing institutional adoption, claims Senior VP of Marketing
Source: Pixabay

Ripple and XRP have been mainstays in the cryptocurrency market for a long time now, with the company known for its partnerships with several institutions while the XRP community continues to be one of the most active spaces in the cryptoverse. In a recent interview, Monica Long, Senior Vice President of Marketing at Ripple, spoke about XRP’s positives, as well as Ripple’s future plans.

Speaking to Trader Cobb, Long stated that the main focus of XRP is utility as “the success of any cryptocurrency comes down to how useful it is.” The VP of Marketing added that XRP is very fast, with the added advantage of increased scalability, when viewed as a settlement asset. In her words,



“XRP is very scalable, almost 50-100 transactions per second. The design and consensus also become faster because it does not face the same network issues as Bitcoin or Ethereum. When it comes to RippleNet however, the killer use case comes in serving liquidity on an on-demand basis.”

Long touched upon Xpring and the involvement of the broader cryptocurrency community in developing XRP’s use cases. She also clarified some points with respect to XRP’s inflow into the ecosystem accounting for a major share of XRP, owned by Ripple. According to her,

“RippleNet customers if they choose to use xRapid, which makes use of the XRP liquidity, don’t have to hold XRP to conduct processes. Hedge funds and other market makers provide that XRO and the liquidity is through cryptocurrency exchanges. We do sell Over the Counter to credit institutions.”

With regard to future developments, Long claimed that Ripple is focused on driving growth for RippleNet, as well as increasing institutional adoption. Apart from that, Ripple is also planning to partner with more financial institutions in other countries, as well as accelerate volumes on the internet. Monica Long encapsulated the organization’s plans by stating,

“We want customers to be thinking about how RippleNet can improve services in as many financial corridors as possible.”





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