- CEO Brad Garlinghouse touches on a wide range of subjects, including how to tackle the large amount of cash in correspondent banking services
- He was speaking to a podcast host at Ripple’s 2019 Swell conference, which took place in Singapore
- “This is a journey that will take many years. But we’re incredibly enthused by the progress we’ve made in a relatively short amount of time”, he said during the interview
The CEO of blockchain-powered online money transfer system Ripple has revealed his goals to take down old-fashioned payment systems and replace them with XRP-powered, blockchain-friendly services instead.
In an interview with podcast The Jay Kim Show, which was recorded in Singapore at Ripple’s 2019 Swell conference, the firm’s CEO Brad Garlinghouse discussed a number of interesting topics.
He explained that part of the inspiration for developing an On-Demand Liquidity alternative to traditional payment service systems lay in both money and speed.
The service works by matching up firms with financial services organisations to conduct almost instant, or at least minute-by-minute level transactions.
Even though the transactions are ultimately still non-crypto to non-crypto currency movements, the On-Demand Liquidity product dimension means that the old-fashioned timeframe of up to five days is not part of the equation.
“Cross-border financial transactions… tend to be very slow and very expensive”, he said.
However, he also touched on the broader strategic goals of Ripple as an organisation and explained that part of his intentions were to tackle some of the traditional, or legacy, international money transfer systems available.
He further said that the ultimate goal would be to bring down the amount of cash in the correspondent banking system which his own organisation is challenging – even if that move had to occur “bit by bit”.
“There’s $10 trillion pre-funded in accounts around the world, which is effectively the oil that is facilitating the engine that is correspondent banking. The oil has to be there or correspondent banking won’t work”, he explained.
“Now, if we can reduce the amount of oil, that improves the efficiency of the global economy. So we feel like, bit by bit, we’re going to be able to take that $10 trillion down to $9 trillion, to $8 trillion.
“This is a journey that will take many years. But we’re incredibly enthused by the progress we’ve made in a relatively short amount of time”, he added.
Prior to serving as CEO of Ripple, Garlinghouse worked for other technology brands.
He was CEO and chairman of Hightail, which used to be known as YouSendIt.
He also spent two years as president of consumer applications at AOL, and also includes a stint at Yahoo! on his CV.
When it comes to remittances, it’s important to keep on top of all of the many different systems and proposals out there.
As a result, heading over to our magazine page is always a smart move.
