Breaking News

Ripple CEO talks about Ripple and its products at CNBC’s Money 20/20
Editorial Team

On Tuesday, Ripple CEO, Brad Garlinghouse talked to CNBC at the Money 20/20 Europe 2018 conference. He proudly declared that XRP transaction was “a thousand times” faster and cheaper than BTC and this is the reason why he is so confident that XRP will be very soon adopted by banking institutions for use with xRapid, and called the pending class action lawsuit “outrageous.”

In order to clarify the misconceptions about Ripple, its token XRP, and its products (xCurrent, xVia and xRapid), Garlinghouse began the conversation explaining what XRP cryptocurrency is used for:

“Ripple is focused on solving the exact problem you described: how do we make cross-border payments massively more efficient, for remittances, for corporates? We use a digital asset called XRP as part of that flow, and we use XRP because it’s a thousand times faster than Bitcoin in transactions and a thousand times cheaper than Bitcoin in transactions. We think the utility of XRP is such that it’s the most efficient digital asset to solve this problem. So, Ripple the company is building on top of this open source ecosystem that I call the XRP ecosystem, and Ripple is building vertically on top of that as a payments company.”

According to the report of, being asked to reply to the recent criticisms such as that of the host of CNBC Africa’s “Crypto Trader” show, Ran Neu-Ner, that the current law value of XRP is due to even though over 100 banks have signed up to use RippleNet, no financial institution is currently using xRapid, which is the only Ripple product that needs the XRP token in production, Garlinghouse replied:

“Well, the first problem that Ripple focused on is engaging with those banks to solve a real-world problem for them. So, we’ve been successful, as you mentioned, signing up over a hundred banks using a product we call xCurrent, and xCurrent allows two banks to settle in fiat basically in real-time. Today, that takes day, is very expensive, and has a very high error rate, as high as 6%. So that works when there are two banks that are working together that already have fiat. If we wanted to go to a third bank where we don’t have liquidity, where we don’t have a pre-funded account [a “nostro” account], that’s where a product like xRapid comes into play. xRapid uses XRP to fund real-time liquidity. So, no longer do I have to pre-fund. There are trillions of dollars parked around the world pre-funded between banks, between corporates, corporates at banks, if we could make those trillions of dollars more efficient, we make the entire global financial system more efficient.”

To the question whether xRapid is not already being used in production, he had a good answer:

“So, we launched xRapid… as a beta product late Q3, early Q4 last year. We announced our first pilot customers on xRapid late Q4. We announced six more in Q1. And these are big names in the remittance world, names like Western Union and Moneygram… And what we’ve found is that xRapid is saving them between 40% and 70% compared to their existing tools for managing and spreading liquidity around. So, xRapid is doing exactly what we thought. We expect to go into production with that product very very shortly, and we think as we continue to move a beta product to a production product, more and more banks, more and more other financial institutions get onboard… The point I’ve made continually, as I’ve heard skeptics spread misinformation, is if we can deliver a better product for a better price, banks and other financial institutions will get onboard.”

Finally, when questioned about the class action lawsuit filed against Ripple by U.S. investor Ryan Coffey early last month, Garlinghouse called the lawsuit “outrageous”:

“Here’s somebody who held XRP for, I think, two weeks… and is making some claims… Whether or not XRP is a security is not going to be dictated by one lawsuit… I think it’s very clear that XRP is not a security, it does exist independently of Ripple the company. If Ripple the company is shut down tomorrow the XRP ecosystem would continue to exist. It’s an independent, open-sourced technology… From an ownership point of view, owning XRP doesn’t give you any ownership of Ripple equity. And also, as we just talked about, XRP has a lot of utility, so to me it’s quite different than what a security you know looks like and I think ultimately we’ll find that conclusion.”