Ruibo wants to make big moves? Plan to build xRapid entities to provide liquidity for XRP

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.

Water-880462_1280

Schwartz said in the discussion that banks often do not want to hold XRP in their systems due to regulatory restrictions.

“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.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

"New and old" exchanges compete on the same stage, how can you play in the future? | Interview with SheKnows

Exchanges are an important part of the blockchain ecosystem. They interact directly with users and therefore change a...

Blockchain

Research Firm Elliptic Uncovers Links between FTX Hack and Russian Attackers

New research from blockchain intelligence firm Elliptic suggests a possible connection between the FTX hacking incide...

DeFi

LK Venture Research Report | Telegram vs Twitter Who will dominate the super application race in the Web3 era?

Original author LeoDengSummary X and Telegram are globally renowned social media platforms that are exploring in the ...

Blockchain

Insurance giant Marsh has customized a full insurance plan for encrypted custodians, can cryptocurrency traders “sit back and relax”?

According to Coindesk's September 24 report, Marsh & McLennan, the world's largest insurance brokerage ...

Blockchain

Unveiling SBF's Defense Draft of up to 250 Pages I Did What I Believe Was Right

SBF traced his development journey, from his childhood in Palo Alto to the top floor apartment he purchased near the ...

Blockchain

The US Department of Justice accuses SBF of misappropriating over $100 million of customer deposits for political donations.

Sam Bankman-Fried is said to have used over 100 million dollars of user funds to provide campaign donations for both ...