On 24 August, the guest of CNBC's Cryptotrader Ran NeuNer conducted an interview with Senior Vice President, Product Management of Ripple, Asheesh Birla. The discussion revolved around the distinction between Ripple and XRP, the use of the XRP token regarding the products built by Ripple for the banking system, and more.
Regarding the use of the XRP token in the products created by Ripple, Birla said that one of the cases of use that the company feels strongly passionate about is cross-border payments. Ripple, in the years since its inception, realized that specific cases of cross-border payments had many frictions, Birla said. Thus, this led the company to build a series of products that would contribute to the ease of process in the area of cross-border remittances.
Birla talked about xCurrent, the first product built by Ripple that aided financial institutions around the world to connect and communicate, send compliant information for them to comply with local regulations and the like.
Here, NeuNer asked Birla if xCurrent was just a product that facilitates communication and not the transactional features. Birla explained that accommodating communication is the main purpose of the product, but has also contributed to transferring value. In his words:
"… this is the main purpose of the ex-current, but it has helped to transfer the value for the legal currencies.This means unencrypted coins … And so if I wanted to exchange US dollars with rupees Indian, you could do it but it would not necessarily imply a digital asset like XRP natively. "
Next, the Vice President discussed the second product, xRapid, which was built around solving the liquidity problem. To explain the case of using xRapid, he cited the example of Mexico as a foreign country, stating that you can move money to Mexico in a matter of seconds through the product. Facilitates this service without having a local bank account there or pesos sitting in it. He explained the operation of xRapid, saying:
"so the experience is that you send the system US dollars for example … And you convert to XRP, move XRP to Mexico and then an exchange Local in Mexico converts it to Mexican pesos and payment.The whole process takes only a matter of seconds compared to the days it takes today, the amount of friction needed for, you know, open accounts in new countries, have pesos and so So I'm really excited about X rapid. "
In contrast to the system provided by xRapid, traditional banks use a system called Swift created over the years & # 60; Birla spoke of Swift saying that it is only a means of communication between banks and does not transfer value. Subsequently, he stated that an error in this case takes days to solve it using the Swift system. Birla believes that the product does not solve the complexity of modern e-commerce and is archaic.