Brad Garlinghouse, CEO of Ripple, was recently interviewed by Stanford Legal, the podcast hosted by Stanford Law professors Pam Karlan and Joe Bankman. The session focused mainly on the analysis of the current and future legality and usefulness of cryptocurrency. The topics of Ripple, its native XRP token, Bitcoin scalability problems and blockchain technology in general were also discussed.
Garlinghouse bagan emphasizing the difference between Ripple and XRP, noting that XRP is an open source and decentralized technology. According to his words, before working on XRP, some of the creators were used to working on Bitcoin during the development of Ledger, but had to face serious scalability problems, some of which had been solved with XRP's help:  "They saw some of the scalability problems that Bitcoin will probably have, starting at a cost of energy consumption." They wanted to build a better digital resource to solve some of these problems. "
However, the CEO of RIpple he thinks that the XRP or the BTC will replace fiat money in the near future, because for now it's useless:
"I do not think we'll buy coffee from Starbucks with Bitcoin or XRP at any time. problem solves? You were talking about paying for your spa bill day and how you do it, but I think somehow friction – fiat currency, the US dollar in this case works pretty well, and so we have to make sure that we better than that we will talk about it as a currency … "
According to Garlinghouse, the worldwide cryptocurrency can really be better than fiat in cross-border payments and in the storage of money. Above all, it is linked to weak economies, affected by inflation. According to Garlinghouse's recent conversation with a World Bank employee, the average cost of remittances to countries other than the G20 was 600 basis points, or about 6%.
"There are economies where the fiat currency is at best a weak currency, and in those contexts, if I were a consumer suffering from hyperinflation, you'd rather keep a cryptocurrency or your legal currency? And in many of these cases, you're seeing people take their dollars, or less dollars, pesos of various kinds, and say, "I'd rather keep it because it's a better asset to hold in terms of potential appreciation." and lack of inflation. "
The CEO believes that cross-border payments are the field in which cryptocurrency can become a perfect solution, in the event that Ripple can provide" real-time "international transactions that promise . This is very likely to upset many industries by saving their resources of time and money.
"We had one of the largest banks in Australia, the CEO told me that 40% of all their consumer wire transfers lead to a customer service call. frustrating for the bank is not just to have to absorb the cost of a phone call for customer service, but also to provide the news that they can not wait a couple of days probably will be there. " Garlinghouse mentioned Ripple and Ripple Net, another Ripple technology, as good ways to make cross-border payments faster, more economically and securely.