“Ripple will prove to be the ideal currency for banks that will soon be forced to use the blockchain technology behind it,” said Brad Garlinghouse, CEO of Cryptomania, in an interview with CNBC.
The company is developing a solution that allows cross-border money transactions between banks in a faster and cheaper way than the current system allows. It is based on a blockchain system, the technology that supports many encryption. The company behind Ripple has many different blockchains, some of which are already used by banks.
One of these is xCurrent, which is already used by many banking institutions, including Santater. XCurrent basically makes the information control procedures needed to make interbank transactions much faster and does not need some cashback from behind to work.
But Ripple has another blockchain application that is targeted at emerging-market banking institutions, xRapid. Payments in emerging markets often require the advance opening of accounts in local currency around the world, which means that the liquidity cost is high for banks. With xRapid, the money sent to the system will be converted to XRP to move through the system much faster than the conventional method, and then converted to any coin needed at the other end.
Because XRP has a four second transaction time, this process will be quick. Some companies, such as Western Union and Moneygram, have already begun to try xRapid, but none of the companies have so far been committed to its exclusive use in these cases.
As Brad Garlinghouse, managing director of Ripple, says by the end of 2019, too many banks are about to start using this service. Speaking about the work of the Money 20/20 conference in Amsterdam, Garlinghouse said, “I have publicly stated that by the end of the year I believe big banks will use xRapid as a liquidity tool. By the end of next year, I believe the number of banks using our services will be measured in tens. ”
Ripple is considered to be one of the most solid cryprobes and even the most promising for the future. At present its value is quite low and is currently trading just under 70 cents. If large banking institutions start using xRapid, giving confidence and confidence in the system behind the currency, demand will multiply and, of course, the price will rise.