The latest statements of Ripple Labs CEO Brad Garlinghouse have brought about discussions in the cryptocurrency world. Garlinghouse's view of Ripple's XRP as a means of revolutionizing the worldwide banking industry could be considered a significant step forward in how cryptocurrencies can be used in real-world applications.
The main point Garlinghouse emphasizes is the potential for XRP to be used as a tool to meet liquidity needs. While large-scale financial transactions such as payments between banks can take hours with traditional methods, it is stated that XRP can reduce this time to seconds. This can help banks optimize capital reserves and reduce transaction costs.
However, it is noteworthy that along with Garlinghouse's statements, the large amount of XRP locked by Ripple also came to the fore. At a time when the company has 800 million XRP locked in its escrow account and 1 billion XRP is released every month, discussions may increase over Ripple's strategies to stabilize the price of XRP.
Garlinghouse reminds the community that the value of a digital asset in the long run is driven by the utility it covers. It then highlights a few factors to consider, including the problem the token solves as a utility, how big the problem is, and how many customers it has.
