Ripple ‘s CEO, Brad Garlinghouse, recently spoke on CNBC about the long-term viability of cryptocurrencies. JackTheRippler (@RippleXrpie), a prominent figure in the community, posted a video in which Garlinghouse highlights utility as a key factor in determining a token’s value, focusing specifically on the problem it solves, the scale of the problem, and its existing customer base. shared.
“One of the things we all need to remember is that the long-term value of a token will be driven by its utility,” Garlinghouse commented in the interview. “What problem does it solve? How big is this problem?”
The crypto market consists of many markets that do not have defined purposes. cryptocurrency It is filled with units. What sets XRP apart in this case is that Garlinghouse’s call to focus on real-world applications is important.
“There is no doubt that there is extreme exaggeration in this system and I do not think that is a positive situation,” he stated. Analysts are currently observing an uptrend in XRP. The token’s potential to capture a large portion of the financial market is becoming a significant driver for investors’ attitudes.
Garlinghouse Explains the Role of XRP
Emphasizing the role of XRP in transforming the banking industry, the CEO said, “For Ripple, we use this digital asset called XRP to meet liquidity needs between banks.” Garlinghouse pointed out that the total amount held by banks worldwide is 27 trillion dollars.
He noted that these banks use this money to pay each other, but a digital asset can replace these payments and settle them more efficiently and at a lower cost.
“In our view, you can use a digital asset like XRP to do this in real time. Because XRP is so efficient, it completes a transaction in about 3 seconds.”
Koinfinans.com As we have reported, the traditional system described by Garlinghouse requires banks to hold significant reserves to ensure that international transactions proceed smoothly. XRP offers a potential solution by streamlining the process and reducing settlement times from days to seconds.
The focus on utility is consistent with a growing sentiment in the financial sector. Established institutions are increasingly interested in cryptocurrencies with demonstrably valuable applications, especially those that improve existing financial systems.
While Garlinghouse defended XRP’s utility in the banking sector, his comments have broader implications for the crypto market. Its emphasis on problem solving indicates a potential shift in the crypto industry towards cryptocurrencies with clear use cases.
Meanwhile, another Ripple executive recently discussed the company prioritizing utility and adoption over short-term price increases, and this strategy places Ripple ahead of this potential market shift.
