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The Ripple CEO explains why XRP is vital for remittance payments of undocumented migrant workers

The Ripple CEO explains why XRP is vital for remittance payments of undocumented migrant workers

Ripple is all about the throw-in. You probably know it already, but the truth is that Brad Garlinghouse, CEO of Ripple, has the mission to convince you that this is the truth. Why? Because Ripple does this or its product will not be anything. With so many encrypted that fail in the market, it would not be the first to fall.

In a recent interview, the CEO once again defended his point of view. According to him, XRP is very useful for the untold people who live far from their lands of origin. He believes that many (mostly poor) workers leave their countries and do not have access to banks in their new homes.

Being cut off from financial institutions, these people have no way of depositing money from their families and relatives to their home countries and this can turn into a serious financial problem for them as they sometimes have to pay a lot more. to send this money which ends up being an ineffective way to do it.

According to a recent survey used by Ripple's CEO, there are two billion non-subscribers in the world, making them a very large population. A good portion of these people comes from developing countries in Africa and some in Asia. The CEO does not believe that it is the way for others to create the infrastructure to collect them when they could have used better ways, especially for international remittance payments.

The best way is, of course, Ripple's XRP. The Ripple product is shown as a way out of this crisis. With the token, you could send money to anyone you want very quickly, so people would have the funds to send to their families despite the fact that they sometimes find themselves in war zones or in other regions where access to banks it's very bad.

During the interview, he said that banks only want to serve customers when they are profitable, so if you are not profitable, you will simply be excluded from the banks. Because the costs of using the bank can exceed these people's income, Ripple offers XRP as a solution.

In this way, says the CEO, even the smaller workers would be able to send money internationally without having to spend a lot of money and this could create a huge global community for the unbanked. Using Ripple, you can send money without even needing an ID, all you need is a smartphone and a good Internet connection to make transactions quickly and at a very low cost, according to him.

As a way to satisfy this community, Ripple is making several alliances in the world and one of the newest is with the Gates Foundation. The partnership seeks to offer payment systems worldwide for unallocated people around the world and use the Interledger protocol for this.

Another important step of the company was the spread in the Middle East, a growing market that represents 35% of the migrant labor force. The company has opened a shop in Dubai to work in the area and create new products specific to this population.

Ripple legal problems

It would not be fair to say just what the CEO of Ripple says. Despite all the potential of the third largest crypto community in the world, exchanging volumes, Ripple and XRP are facing many problems, especially in the United States.

Ripple wants to be a remittance service and wants the XRP to be decentralized. However, many judicial trials in the United States are trying to label Ripple as a security instead of a utility token like Bitcoin. This could cause serious damage to the company's future, which is why I said it was really important for Ripple to be considered a remittance company.

The lack of regulation of the cryptographic market has created a big trap for Ripple and XRP and, if the company is considered a security, this could have a huge impact. In any case, follow our blog for more reports on Ripple.

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