Ripple, Brad Garlinghouse

Sometime back, the Western Union (NYSE: WU) CEO made a statement to the effect that they had not achieved the cost-effectiveness that they were aiming for with ripple (XRP). That’s despite the fact that they had only tested ripple with only 10 transactions in a period of over 6 months. This led many investors to panic that maybe XRP is not as effective as it is marketed to be. However, in a recent interview with CB insights, ripple CEO made some remarks that make it clear that ripple probably doesn’t need Western Union and Coinbase. If anything, these companies need XRP more than it needs them.

Brad Garlinghouse said something to the effect that in 6 months, ripple launched a product that is way more effective than what Western Union has been trying to optimize for the last 100 years. Essentially this means that if Western Union doesn’t adopt ripple, it will be their loss. They are likely to become a dinosaur in a fast changing world, where financial transaction costs are about to become instant and almost free.

The reason why this is a loss for Western Union is because their competitors are likely to adopt the technology and Western Union will lose clients. No one would pay high fees, when there is the chance to pay a low fees for instant transactions. Once banks and other Western Union competitors start using ripple (XRP), the company will have no choice but to make use of this technology at scale.  Failure to make use of it will simply see them get out of business. Ripple is simply a technology whose time has come. One that enhances the capabilities of those that adopt it, and killing the business models of those that choose to stay on the sidelines.

As for Coinbase, Brad Garlinghouse said something to the effect that it is in its interest to participate with ripple, as it seeks to solve institutional problems at scale. To a large extent this makes sense because Coinbase is not the only exchange in the U.S and many others are coming up, and gaining traction. As such, for an exchange as big as Coinbase, it is in their own interests to add the one crypto that looks set to change the banking industry as we know it today.

If it partners with ripple, Coinbase would see an explosion in users looking to trade in XRP, and push up its commission. As for ripple, they don’t exactly need them. XRP looks set to solve a $20 trillion problem, one that will see it become the standard of cross-border payments across the world. Once this happens at scale, ripple will become so popular that exchanges will be scrambling to list it.

Clearly, ripple (XRP) doesn’t need Coinbase or Western Union for it to shine. It is destined for greatness even without these two. With such power over corporates, there is no doubt that Ripple is headed to the moon.


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