In an interview with Jeff Roberts of Fortune magazine, Ripple CTO David Schwartz talked about the company's main goal of xRapid and the company is improving XRP. The problems faced by the market adoption rate process. He said that Ripple had difficulty convincing banks to use XRP for cross-border payments, and subsequently created xRapid.
Schwartz said in the discussion that banks often do not want to hold XRP in their systems due to regulatory restrictions.
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“I think we have difficulties in convincing banks because banks are very conservative. They go very slowly. We find that non-bank financial institutions and payment companies are much more active, they are things that save time, money and costs. More interested. So we developed the xRapid product to solve this problem.
xRapid adapts to the reality we face. Our idea is that institutions should hold XRP or digital assets. They will pay with digital assets, or regional centers will use digital assets to settle them. The world is not ready for a variety of reasons, including regulatory issues, lack of liquidity, and an immature ecosystem of digital assets. . So we can't reach the final state we want. We must come up with a more practical plan. ” To solve this problem, he, like Ripple, intends to help create an xRapid entity that allows payment companies or customers to purchase legal currency using digital assets in exchange for providing these currencies to banks. Schwartz strongly suggests that this solution can bypass the restrictions on digital asset companies.
However, to achieve this plan, Jeff Roberts asked Schwartz if he needed a mediator or an organization that was willing to hold a large number of XRPs and trade in different legal tenders, and whether those companies already existed.
Schwartz explained that such a system would be completely open and would be an important factor in distinguishing Ripple from its competitors. Since XRP can be held by anyone, any customer or entity can create a "countercurrent" system that acts as an intermediary between the bank and the customer who has the ability to settle cross-border payments. Schwartz added that Ripple plans to launch this counter-current service, but according to him, this service is already in the open market.
In addition, Schwartz added that such services occur in a closed ecosystem in which these people “net earn” with others who want to achieve a net benefit for their XRP in the same way. (using XRP to trade legal tender) their digital assets.
Schwartz also expressed his views on the stable currency. He believes that stabilizing the currency "actually helps" by helping customers hold digital assets and dealing with the volatility of cryptocurrencies . Therefore, it is safer to hold stable currency assets in a market where a user can trust the issuing entity and the issuing entity does not pose liquidity problems.