Ripple CEO: Libra’s biggest problem is Facebook’s trust deficit

Ripple and its CEO Brad Garlinghouse have made it a point to inform users that cross border transactions will be the next big thing in the cryptocurrency space. The CEO also believes that utility is the most crucial aspect of a useful cryptocurrency, and that was evidenced in a recent interview with Bloomberg.

Garlinghouse believed that the best way to make the ecosystem better was to reduce traction. He claimed that the technologies that Ripple developed solve some real problems and that banks can take advantage of these solutions. The Ripple official was also asked about how much Ripple was denting SWIFT’s business, one of the company’s main rivals. To this, Garlinghouse replied:

“SWIFT has defined how cross border transactions are enabled across the world and how users can make use of the facility. What we wanted to do is bring it into the modern world and now that the world of internet is more or less established, we feel this is how its supposed to work. There are about 3000 digital assets being traded on a daily basis now and 99 percent of those will fizzle out eventually.”

Another main point of discussion was the issue of volatility while transferring digital assets from one region to another. Garlinghouse shut down the narrative that when it comes to XRP transfer, the person receiving the money may receive far lesser than what he/she expected. The CEO debunked the myth by claiming that the volatility in the XRP market was far lower than the mainstream market and that customers should be glad that the issue is slowly but surely being solved.

The interview also touched upon the effects of Facebook’s Libra on the financial world and if it had resulted in any ramifications for other cryptocurrency organizations. Brad Garlinghouse stated that there were both upsides and downsides to the entire Libra phenomenon. The positive side was that it had brought attention to the industry, which was otherwise regarded as a niche, but that still paled in comparison to Facebook’s cons. According to the CEO:

“Facebook’s approach of reducing friction between the sender and receiver is one way to make the space better. The challenge that Mark Zuckerberg and Facebook will face is the issue of trust and after all that the company has done, I am pretty sure it is a big hill to climb for them. The company has huge deficit of trust with its customers.”

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