Ripple’s mission to change the way people use the market for remittances was very clear. Chris Larsen, founder of Ripple, said earlier that the company was steadfast in changing the financial landscape with blockchain technology and On-Demand Liquidity [ODL].
Larsen also spoke about Ripple’s work recently when Michael Arrington, CEO, discussed a three-step plan with Arrington Capital. During the discussion, the CEO of Ripple reiterated the idea of changing the way capital moves.
According to Chris Larsen, Ripple was meant to be more than just an Internet money transfer system. He envisioned the company as transforming the online space into a value-added Internet where users can have access to a transparent financial framework. One of the first steps on this journey was to replace SWIFT as the current leader in money transfer. SWIFT has been the preferred method of transfer for years now with clients such as Western Union and HSBC.
Ripple and its officials have been confident in achieving the goals set for the fintech organization. The company wants to displace fiat and create corresponding banking where there is no third party watching over your transaction, said Larsen. In the founder’s words:
“We are looking at how we can get on board the Interledger Protocol [ILP] train and do it well. There are plans to use XRO in the ODL and then create capital whenever necessary. This will solve the problems faced by banks where they need to store capital in different parts of the world.”
Larsen admitted that the current financial models where all inefficient where users were the most affected. The current settlement rates for fiat transfers were appalling as many complained about clogged payment corridors. Ripple’s idea of activating the ODL works on the basis of providing rapid liquidity. Startups like MoneyTap have taken the feature and implemented it across payment corridors towards Mexico.