- Ripple CEO Brad Garlinghouse predicts that next year half of the world’s 20 largest banks will use digital assets, like XRP.
- The XRP token from Ripple should play a leading role.
A few weeks ago, Ripple announced that with its On-Demand Liquidity (ODL) it intends to provide more than USD 2 trillion in liquidity to the banking sector worldwide. This could save banks worldwide the cost and time of cross-border transactions. However, not all financial institutions are convinced by Ripple’s technologies.
Western Union found in a pilot program that the cost of using Ripple was 5 times higher than the in-house system. However, Ripple CEO Brad Garlinghouse is convinced that banks will gradually recognize the benefits of digital assets and use them in their own businesses.
The 20 largest banks in the world will be using digital assets in 2020
Ripple has stated in a new report that there are three key factors that will drive the adoption of digital assets. These include the ever-increasing demand for secure mobile wallets of cryptocurrencies such as XRP. As Ripple notes, customers want to be able to perform all services in one place, their smartphone.
Increasing demand in the credit and loan sector is creating new use cases by financial institutions, which will promote the spread and acceptance of these services, particularly in developing countries such as Nigeria, Kenya and parts of Latin America. In addition, tourists will benefit from the use of digital assets across national borders. Garlinghouse believes that next year the world’s largest banks will use digital assets. Ripple writes about this in the current report (freely translated):
CEO Brad Garlinghouse is even bolder, predicting that half of the top 20 biggest banks in the world will actively hold and trade digital assets in 2020. He is also one of many on the team that believes fiat currencies will go digital in the next year.
Current developments show that Garlinghouse could be right in its claim. Central banks and financial institutions around the world are piloting different scenarios in which fiat currencies are “digitized” and moved through the block chain.
China, Europe and Facebook Libra
China will be the first country in the world to launch a central bank-supported cryptocurrency. The developments are progressing faster than planned, so that a pilot project is to be launched at the end of this year. Furthermore, the European Central Bank intends to set up a task force to promote the introduction of the digital euro. France announced that it will be the first EU country to test the digital euro in a shielded environment with the participation of several banks.
Facebook Libra continues to meet with strong resistance worldwide, but recently presented a new roadmap for the further development of the project. Libra last counted 50,000 transactions carried out within the network. These developments show that Garlinghouse could be right with its forecast. It remains to be seen whether the current progress will actually progress as quickly as assumed.
The price of XRP has been trending sideways (+ 0.07%) for the last 24 hours and at the time of writing is at USD 0.1943.