Speaking at the Money 20/20 Asia event, Ripple’s CEO, Brad Garlinghouse, shared his comments on the effectiveness of Ripple as a payment system, and once again, advocated the notion of centralization within the blockchain industry.
That approach by Garlinghouse, and in extension Ripple, always earns him and the company disdain from a large portion of the cryptocurrency community that is of the opinion that opposing decentralization goes against the very notion of blockchain.
However, Garlinghouse does not seem to be caring much about it, since he has been driving Ripple not towards mass adoption, but to be leveraged by enterprises all over the world to fulfill their payment solutions – something which has earned it massive partnerships from the likes of central banks such as the Bank of England, corporations the likes of SBI Holdings, and payment solution giants similar to Moneygram and Western Union.
centralization and working with banks is the key to success, says ripple ceo
Garlinghouse mentioned that cryptocurrencies need to work with central banks and conventional financial entities rather than working to “disrupt them.” He stated that to change the financial system, one needs to be a part of it first.
“Global payments and banking won’t be changed from the outside,” he said. “They will be changed from within.”
However, he also left the door open to go back to the community that oh-so favors decentralization, by mentioning that the way Ripple works would ensure that its ledger keeps existing ever after Ripple has stopped its operations, and that to him translates to decentralization in itself.
“The reality is we’re working with decentralized technology,” Garlinghouse said. “If Ripple goes away, and I really hope it doesn’t, the XRP Ledger will continue to exist.”
swift is not so swift according to garlinghouse
He also had a few choice words about the SWIFT network, which is the banks’ choice network to facilitate international payment transfers.
Answering a question about whether a blockchain based payment solution would ever be able to combat with what SWIFT has to offer, Garlinghouse mentioned that the error rate which the SWIFT network registers states otherwise.
“SWIFT’s published error rate is six percent,” he said. “Imagine if six percent of your emails didn’t go through without additional human intervention.”
He argued that thus, blockchain actually remains superior in this sense with no errors posted whatsoever.