Ripple’s Garlinghouse told Fortune’s Brainstorm Finance conference that the entry of Facebook’s Libra into the crypto scene does not worry him since it is a boon for the general crypto market, and XRP in particular.
Since its inception, the Libra project has dominated headlines but it is not yet ready for general use. As we reported earlier, Facebook launched Libra cryptocurrency’s White Paper on June 18. Brad tried to decipher all the noise surrounding cryptocurrency and its future potential.
It is evident that Facebook’s Libra announcement has caused jitters in global financial systems. But, Garlinghouse is adamant that the entry of Libra crypto will lead to big business for his banking software, xCurrent. He said that Libra caused more banks to consider using his software and associated XRP token to transfer money across borders. He explained:
“[It] has absolutely catalyzed contract activity. This has been a call to action.”
Will Facebook’s Libra Cryptocurrency Send Ripples into Ripple’s World?
Garlinghouse is confident that his primary target market, financial institutions, and banks, will turn to Ripple’s xCurrent product. According to him, Ripple and Facebook are tackling different markets. Ripple targets large-scale settlements and the company recently signed a massive deal with MoneyGram. Nevertheless, is there enough reason to think Facebook will remain within the peer-to-peer market?
Facebook plans to eventually roll out crypto for its billions of users. Once the token enters the market, users can make payments on various online networks like WhatsApp and Messenger.
What will hold Facebook back from expanding into on-boarding far-flung banks around the world? Analysts and investors now wonder what advantages Ripple hold over Facebook that will guarantee a peaceful coexistence. Maybe Garlinghouse should be concerned about how the entry of Facebook’s Libra will affect his xCurrent software’s performance.
Meanwhile, Ripple already has many active contracts with companies that may want to jump ship. These offer the company a lot of time to assess the situation. Also, Ripple will then have tangible analysis on how it should adapt to a world with Facebook in the crypto sphere.
The hype around Libra has led to increased interest that will benefit the general crypto industry. Evidently, Ripple has no issues with Facebook’s enhanced know-your-customer capabilities. However, maybe Garlinghouse should be concerned about the name recognition that his new rival carries. It is not a wonder if banks and Facebook figure out a way to benefit from each other in the future.