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With the rally in the cryptocurrency market finally taking hold in recent months, many are expecting the likes of Ripple to take the next step. A similar thought process was recently shared by RippleNet GM Asheesh Birla after appearing in the latest edition of the Lend Academy podcast to explain why Ripple’s credit line product may be poised to conquer a new market.
While traditional providers easily extend credit lines to construction companies, the same cannot be said when it comes to loans to Fintech companies. According to the Ripple executive, the company can potentially solve this problem not only by offering cross-border payments, but also by giving them some capital for two or three days and charging them for it.
There is a real need in the market for an all-in-one experience, he said, adding that in addition to existing customers, there’s a whole other segment around ecommerce that needs the same thing.
“I don’t think you have the right kind of financial infrastructure to support this type of company, so it’s something I’m looking forward to innovating and building for next year.”
While Ripple’s new product offering is still in its infancy, so too is its strategy to capitalize on growing interest in CBDCs globally.
Speaking of the Chinese CBDC pilot who went live recently, Birla said:
“I think everyone else will play catch up, to be honest, you don’t have as many centralized functions that China has. The interesting thing here is that it has nothing to do with the blockchain. “
In light of the centralized solution offered by the Chinese CBDC, Birla noted,
“I think RippleNet can actually take these local CBDCs and connect them to get money moving more efficiently.”
Additionally, the executive said Ripple has repositioned itself well with building RippleNet’s decentralized network as it works to connect national CBDCs and make them more efficient.
The assumption here is that Ripple intends to promote the use of XRP as a “ bridging asset ” between CBDCs, with the company even moving to hire a Senior Director of Central Bank Engagements for the sole purpose of executing this strategy.
