Ripple Labs CEO Brad Garlinghouse has recently made statements that have sparked discussions in the cryptocurrency world. Garlinghouse’s view of Ripple‘s XRP as a tool for revolutionizing the global banking industry could be considered an important step in how cryptocurrencies can be used in real-world applications.
Ripple CEO Touches on a Key Point
The main point emphasized by Garlinghouse is the potential of XRP to meet liquidity needs as a tool. Large-scale financial transactions, such as payments between banks, which can take hours using traditional methods, could be reduced to seconds with XRP. This could help banks optimize their capital reserves and lower transaction costs.
However, with Garlinghouse’s statements, the large amount of XRP locked by Ripple also comes into focus. In a period when the company has locked 800 million XRP in an escrow account and releases 1 billion XRP into the market each month, discussions on Ripple’s strategies to stabilize the price of XRP could intensify.
Garlinghouse reminds the community that the long-term value of a digital asset is triggered by the utility it covers. He then highlights several factors to consider, including the problem the token solves as a utility, how significant the problem is, and how many customers it has.
This situation shows that Ripple is a topic of debate within the cryptocurrency community. In particular, uncertainties regarding the amount of XRP Ripple will release into the market and how this quantity will affect the token’s price are attracting the attention of investors and community members.
500 Million XRP Released to Market Instead of 1 Billion
Garlinghouse’s statements and Ripple’s XRP policies could be an important step for wider acceptance in the cryptocurrency world and broader real-world applications. However, transparency and clarity will be important in this process. Ripple is expected to provide more clarity on the future of XRP and engage with the community.
On the other hand, reports reveal that after releasing 1 billion XRP from its reserves monthly, Ripple has locked 800 million XRP tokens back into an escrow account. Recent data shows that the company has locked the mentioned XRP in three different transactions.
Lastly, this month Ripple made a change to its routine by withdrawing 500 million XRP from the escrow account instead of 1 billion. This system, which started in December 2017, is expected to balance the XRP market and potentially improve the token price. However, the current process seems to be clearly suppressing the XRP price. At the time of writing, the XRP price is trading at $0.65.
