The Chief Executive Officer (CEO) of the payment firm Ripple Labs, Brad Garlinghouse, has revealed the game-changing role of XRP in revolutionizing the banking sector in the world.
Ripple CEO Says XRP Can Be Used To Settle Liquidity
Jack The Ripper, a community influencer and figure, shared the information with the cryptocurrency community on the social media platform X (formerly Twitter) on Monday. Ripper’s X post was accompanied by a short clip of Brad Garlinghouse in a recent interview with CNBC, where the CEO highlighted the role of crypto assets in transforming the banking sector around the world.
Speaking on revolutionalizing the banking sector, according to the Ripple CEO, Ripple currently “utilizes the digital asset (XRP) as a tool to settle liquidity needs between financial institutions (Bank).” In addition, Garlinghouse noted that there is a total of “$27 trillion presently held by different banks in the world to carry out payments between each other.”
As a result, Garlinghouse believes using XRP to perform these transactions between banks in real time presents a better sector. This is because XRP is very “efficient” in carrying out these transactions, as it takes less than “3 seconds” to get it done in comparison to the traditional method, which takes up to an hour.
Banks must maintain sizeable reserves under the traditional system that Garlinghouse outlines in order to facilitate seamless international transactions. XRP makes this procedure easy and cuts settlement delays from days to seconds, providing a possible result.
Garlinghouse has reminded the community that the value of a digital asset in the long term is triggered by the utility it covers. He then highlighted several factors to consider, which include the problem the token is solving as a utility, how big the problem is, and how many customers it has.
Furthermore, the Ripple CEO asserted that there is a lot of hype present in the system today; however, he can not decide if that is a good thing for the sector or not.
The Payment Firm Locks 800 Million XRP In Escrow
Reports have revealed that Ripple locked away 800 million XRP tokens in its escrow account after its monthly release of 1 billion XRP from its reserve. Data from Whale Alert shows that the company locked away the aforementioned XRP in three distinct transactions.
Whale Alert reported that the first transaction saw 200 million valued at $118.94 million locked away in the escrow reserve. A few minutes later, the firm locked away another 100 million XRP valued at $59.48 million in the account.
Meanwhile, the last transaction witnessed a whopping 500 million XRP tokens worth approximately $297.65 million being locked away. It is noteworthy that the payment firm usually releases 1 billion XRP every first day of the month.
However, this month saw a shift in the routine, with Ripple releasing 500 million XRP instead of the initial 1 billion. This system which began in December 2017 is expected to stabilize the XRP market and potentially improve the token’s price.
Featured image from iStock, chart from Tradingview.com