Demystifying Cryptocurrencies for Traditional Finance
In a world where bankers are often considered gatekeepers of financial innovation, Brad Garlinghouse, the CEO of Ripple, is on a mission to change the narrative surrounding cryptocurrencies. During a recent chat with CNN, he expressed the urgent need to bridge the gap between traditional finance and this burgeoning asset class.
The Regulatory Roadblock
Garlinghouse pointed out a critical moment where someone at the World Economic Forum quipped, “Crypto is still a bad word here.” This sentiment isn’t isolated; it’s a reflection of the broader apprehension that financial institutions harbor towards digital currencies. Garlinghouse’s strategy? Direct dialogue with regulators. He emphasized, “Once regulators understand you’re not circumventing regulatory frameworks, they get very comfortable very quickly.” It’s all about building trust and demystifying the technology.
Bridging the Gap: From Doubt to Understanding
When speaking with financial leaders, Garlinghouse shares how XRP, Ripple’s cryptocurrency, provides solutions to genuine problems rather than evading regulations. He elaborated, “A lot of what I am doing is meeting with regulators … explaining to them how crypto can be used.” By tackling misconceptions and unveiling real-world applications, the fear surrounding crypto can begin to dissipate.
Liquidity: The Magic Ingredient
Garlinghouse also highlighted the impressive adoption rate of XRP, with a record of $54 million in cash flows to Mexico in just one week. This accounts for a whopping 7.5% of the total USD to Mexican peso flows. As he aptly states, “liquidity begets liquidity.” With each new institution joining Ripple’s network, the overall liquidity increases, creating a virtuous cycle of growth and adoption.
Ripple’s Expanding Ecosystem
As of October 2019, Ripple had made significant strides, boasting 168 customers including 118 banks and various financial service providers. A shining example of Ripple’s growing influence is Bank Asia, which recently became part of RippleNet with $3.4 billion in assets. With such collaborations, Garlinghouse aims to bolster Ripple’s reach and encourage more banks to join the movement.
Recognition in the Crypto Sphere
Garlinghouse’s efforts have not gone unnoticed. He was recently featured in Cointelegraph’s Top 100 list, shining a spotlight on influential figures in the cryptocurrency sector. This recognition only adds to the momentum as Ripple seeks to redefine interactions within the financial landscape. Can we expect a world where cryptocurrencies are understood and embraced? Only time will tell, and Garlinghouse is determined to be a part of that narrative.
