During an interview with CNBC, Brad Garlinghouse, the CEO or Ripple, said that the future of Ripple is bright as many banks will be using the XRP ledger by the end of 2019. The XRP ledger is an open-source codebase that can perform over 1,500 transactions in every second. It requires the XRP coin.
This isn’t the first time Garlinghouse is hyping Ripple. During another interview at the conference called Money 20/20, Garlinghouse made his confidence in Ripple clear. He said:
“I have said it before that by the end of 2019, the xRapid ledger will be a significant tool in banks around the world. Before 2019 comes to an end, I believe that dozens of banks will embrace Ripple.”
Ripple Will be Adopted by Banks Soon
One of the projects the company is working on is to provide liquidity solutions for financial institutions allowing them to make cross-border payments in a faster, transparent, and cost-effective way compared to traditional methods. The xRapid project is one of the proposed solutions. This system was developed for institutions that are reaching out to emerging markets. It enhances cheaper, and, faster transactions.
The system filters third party collections for the most competitive options. After the money is converted to XRP, it will be converted into any currency required from the receiving end.
The system depends on scalability and speed so transactions are completed within minutes nationally while cross border transactions may require 2 to 3 days for large remittance.
Regarding the price of Ripple, Garlinghouse said:
“The industry is nascent and speculation is what dominates the market action. In time, people will understand the unique use cases. Bitcoin will be a panacea as people suspected it will be. Bitcoin would solve different problems. There are different kinds of blockchains and ledgers being created daily.”
Will Garlinghouse prediction come true? Will Ripple become adopted by several banks before the end of next year? Will this adoption influence the price of Ripple?
Even as the crypto market searches for a bottom, Ripple continues to make major expansion moves across the globe. The company recently made a move in Israel by entering into a partnership with the 5th largest financial institution in the world and the largest bank in Israel, GMT. This is all in a bid to boost the financial industry there and consolidate the company’s dominance in the region.
GMT issued a public announcement stating that both companies share a similar philosophy and this has helped them to reach mutually beneficial terms after discussing in details. Part of the announcement was as follows:
“After a precise and long discussion process, GMT has decided to chose Ripple. By working with Ripple and its partners, we would contribute in creating a global financial system using high-end values and technology that will be affordable and transparent.”
The GMT team was happy with the partnership stating that the use of Ripple’s technology is an innovation that will be imitated by the different fintechs in the region. The announcement continues:
“GMT is joining establishments like CIBC, MoneyGram, AKBANK, MoneyGram and many others who have already started using the Ripple platform. With this partnership, GMT will be establishing its place in the forefront of the FinTech industry in Israel. It will also work hand in hand with some of the leading companies in the world.”
Currently, the company hasn’t talked about which of Ripple’s technology it intends to use. It could be xCurrent, XRP, or xRapid. However, one thing is clear. This partnership is a threat to SWIFT, the current leader in the industry when it comes to making cross border remittance. This is no surprise as SWIFT had suffered a lot of criticisms in recent time. Many experts in the financial world believe the technology is now outdated and should be replaced with emerging technologies like Ripple.
AkBank In Turkey Starts Using Ripple’s Tech
As Ripple cements it relationship with the financial institutions in Israel, it is also making moves in Turkey. One of the major banks in Turkey, AkBank, has just started using Ripple’s xRapid technology. Even if the launch of the technology was just announced, the project has been ongoing for more than 12 months.
Will XRP Get A Boost In Price?
Normally, the effect of such a partnership on the price of XRP will be visible if the partnership makes use of the XRP token. Notwithstanding it is going to go a long way in promote the adoption of Ripple’s technology. The effect on the price will only be visible when the bearish market ends.