Ripple and XRP – Part 3: Ripple’s Vision for XRP (2018)


The Internet of Value is about rewiring the
global financial infrastructure to dramatically improve the cost speed and certainty of how
transactions flow. It’s amazing to me to how many people that
don’t realize how much friction there is in payments. We’ve become habituated to just expecting
this is how it works. And I think like so many other industries
that have been disrupted by reducing friction, increasing speed. I think we’re going to see a dramatic change
over the next ten or even fifteen years that are really hard to predict today that are the foundation
laid upon that Internet of Value. XRP is part of the heartbeat of Ripple. It is the foundation of how we think about
liquidity management in a core problem of how the financial infrastructure works is
around how liquidity is managed. Today financial institutions are wired with
pools of capital they’re called nostro and vostro accounts. And these are accounts that are pre-funded
between financial institutions. And that’s capital sitting dormant and not
being used for either working capital, lending or what have you. By using a digital asset, you can enable liquidity
in real-time. This is transformational to how global financial
infrastructure is wired. Every marathon starts with a single step. For us, the first step is getting financial
institutions engaged and working with us. Getting them to understand how the core technology
with xCurrent works, introducing how we can help manage liquidity. There’s a lot of friction and cost associated
with banks and financial institutions working with other institutions. We can change and accelerate how that works,
really materially, dramatically and I think introducing XRP into those flows will take
time, but as I said every marathon starts with a single step. When I zoom out and look where Ripple sits
in the blockchain and crypto ecosystem, we are incredibly fortunate to be the only company
with real customers solving real problems. It is at the early stages of that marathon,
but there is no doubt when we look at the race that has started we are the only ones that
have crossed that starting line.

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