Garlinghouse's mission is to remove bankers' fears about cryptocurrencies. He wants to get them on board the new investment category.
Reassure banks
During an interview with CNN, Garlinghouse explained that "as soon as regulators understand that the regulatory frameworks are not being circumvented, they feel very comfortable very quickly."
Garlinghouse said that someone at the World Economic Forum in Davos told him that "crypto is still poorly known there". A large part of his work consists of explaining to bankers how crypto can solve problems while still complying with the law. That is because of their traditional attitude towards finance. He said the following about this:
“I have a lot of meetings with regulators and meetings with senior people at banks. In addition, I explain to them how crypto can be used, in particular XRP. How it can be used to solve a real problem, not to bypass regulation. Once people understand that, they get disarmed very quickly, and it is no longer known as bad. "
Garlinghouse also discussed the adoption of Ripple's crypto token, XRP. He noted that it was used last week for $ 54 million in cash flows to Mexico. He claimed that this is 7.5% of the total flow of US dollars to Mexican pesos. This is in contrast to around 3% in December.
The CEO explained that such rapid growth is due to the fact that "liquidity generates liquidity". Garlinghouse said that the value of a product such as XRP-based on-demand liquidity increases with the liquidity of the market. Liquidity increases when - attracted by high liquidity - more institutions join the network.
The rapid development of Ripple
From October 2019, Ripple had 168 customers. These consisted of 118 banks, 16 money transfer companies, seven foreign currency companies, two cryptocurrency exchanges, 11 payment providers, six software and technology companies and eight others, including Deloitte.
Bank Asia, a Bangladesh-based bank with $ 3.4 billion in assets, joined Ripple's blockchain-based financial services network, RippleNet, earlier this month.
