Ripple CEO Brad Garlinghouse believes XRP could prove to be the perfect fit for central banks looking to get their currency into the digital age.
In a new interview on The Scoop podcast, Garlinghouse says that when central banks start launching their own currencies, sourcing liquidity and compatibility between currencies could be difficult.
This, he says, is why Ripple is pushing XRP as a bridging asset to power cross-border transactions and exchange one currency for another.
“The whole point of XRP in our context is to be a bridging asset. So if you are using a US dollar stablecoin, you still need to get a Brazilian Real stablecoin or an Australian stablecoin.
The point [of Ripple’s efforts] is to allow a lot of efficiency and liquidity between XRP and the US dollar and XRP and the Australian dollar. You just have to worry about bridging liquidity between each pair. So just using stablecoin doesn’t really solve the problem that XRP is solving. XRP as an extremely efficient and extremely scalable blockchain is ideal for this. “
Additionally, it says Ripple is exploring other ways to expand into the realm of cross-border payments in the future.
“We will definitely enter other verticals and not just be a solution for cross-border payments … We want to help clients grow and expand their business. On-demand liquidity does that. Line of Credit does. We will definitely look into verticals. and maybe it’s insurance, maybe it’s commercial finance.
There are many other examples where blockchain technologies can be used to reduce friction and improve the efficiency of such transactions. “
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