By CCN Markets: Ripple CEO Brad Garlinghouse said it would be a “record week” for Ripple at a conference this week. The cause? Facebook’s Libra cryptocurrency project, which has dominated headlines since its inception and reportedly isn’t ready for general use.
Garlinghouse is reportedly confident that his target market – banks and financial institutions – will now take a fresh look at Ripple’s xCurrent product, which helps move money across borders.
According to his statements, Garlinghouse believes that Facebook and Ripple are tackling different markets. Ripple focuses on large-scale settlement, while Garlinghouse thinks that Facebook’s saying: “We don’t need Western Union anymore.” Garlinghouse says this within a week of his company inking a massive deal with MoneyGram.
However, is there sufficient reason to expect Facebook to remain within the peer-to-peer market? Why shouldn’t Facebook expand into on-boarding far-flung banks around the world? What advantages does Ripple currently have over Facebook that make it sure it’s going to peacefully coexist?
For one, Ripple has existing contracts with numerous companies that might seek to jump ship. These give the company plenty of time to assess the situation and determine how it should adapt to a world with Facebook in the crypto space.
Garlinghouse claims that just the hype around Libra has led to increased interest. In effect, the CEO sees Facebook’s entry as a boon to crypto generally.
Obviously, the bank-friendly company has no issues with Facebook’s amped-up know-your-customer capabilities. But shouldn’t it be concerned about the name recognition that its new competitor carries? What’s to stop banks and Facebook from figuring out a way to benefit each other?
At Fortune Magazine’s Brainstorm Finance conference this week, Garlinghouse said:
“This is going to be a record week for Ripple.”
Contrast this to the CEO’s reaction to JPMorgan Chase’s blockchain project. Garlinghouse was bullish then but differently – he contended that ultimately something like Ripple would be necessary when banks need to do business with each other. Exasperated, Garlinghouse also said he didn’t “understand” the concept of building a product like JPM Coin.
Garlinghouse also committed to sending David Marcus, Facebook’s blockchain chief, a case of champagne as a thank you.
This article was edited by Gerelyn Terzo for CCN.com. If you see a breach of our Code of Ethics or Rights and Duties of the Editor, or find a factual, spelling, or grammar error, please contact us and we will look at it as soon as possible.
Last modified: July 2, 2020 7:23 PM UTC