After Brad Garlinghouse took the stage for an interview with Stifel Tech Analyst Lee Simpson, the CEO of blockchain-based payments platform Ripple (XRP) voiced his thoughts on bitcoin (BTC) and blockchain, stating the latter “will not disrupt banks.”
Ripple CEO States Blockchain not Confined to Banks
A report by The Street revealed the startling opinion of blockchain technology Garlinghouse holds, considering financial institutions generate Ripple’s primary business.
Garlinghouse stated the current market has “a lot of blockchain craziness” and listed three indications which he believes define “market winners:” Product-Market fit, Customer traction, and Regulatory engagement.
The entrepreneur believes bitcoin is not the “panacea” everyone supposes it to be, and that blockchain plays a more significant role in the system other than a mere disruptor of the banking industry.
With a focus on emerging markets, Garlinghouse held his company’s native XRP token in high regard, ascertaining its usage as “how liquidity will be managed in the future.” He focused on emerging markets.
XRP [is the] the best digital asset for settlement. Bitcoin today takes 45 minutes to settle a transaction. Whereas XRP could take 4 seconds to settle.”
He added that banks would undoubtedly use what is cheaper and efficiency, and XRP fits the bill in this regard.
Garlinghouse: “Bitcoin Is Controlled by China”
The entrepreneur called out China’s influence in the Bitcoin ecosystem, stating “ there are four miners in China control over 50% of Bitcoin.” Garlinghouse was presumably referring to Bitmain’s BTCPool and AntPool, which infamously control a large part of bitcoin’s hashing power.
Garlinghouse shoved aside thoughts of bitcoin becoming a universal digital currency, singling out Steve Wozniak’s optimism on the topic, due to a sizeable Chinese influence on the pioneer.
“How do we know that China won’t intervene?” said Garlinghouse, “How many countries want to use a Chinese-controlled currency? It’s just not going to happen.”
Despite his harsh opinion, Garlinghouse admitted to owning bitcoin, and acknowledged its status as “digital gold.” However, he cautioned the crowd to invest what they could afford to lose.
The entrepreneur concluded his interview with insight on Ripple’s future:
“When I think about the transformation, it is fundamentally changing the way millions participate in banking. We can fundamentally change the way this works, to bring an entire population up a step in the system.”