A Ripple Executive has downplayed the cost-savings of blockchain technology over traditional banking arguing that growth is a stronger message for attracting business clients, including banks.
Blockchain: Next Evolution of the Internet
Danny Aranda, Managing Director of Strategic Growth at Ripple, discussed how the firm attracts banks to their payment solutions and how they work with regulators. In an interview at the CryptoCompare MJAC conference in London, he said the crypto community need to look past cost savings to the element of growth.
“I don’t think the real value proposition will come around cost savings. I think it’s about growth, about revenue potential. A lot of times when we speak with banks it’s more about how you can offer a new kind of service to your customers and how you will be able to pursue new customers and break into new kinds of markets.”
Aranda also argued that the lack of a global bank and global payments system provides the problem for blockchain technology to solve. He said that “blockchain is the next evolution of the internet. There will be a new internet and money will be embedded in it.”
“I think you can expect more @Ripple focus and traction on payment flows. I think our traction is playing out and network effects are taking off.”
–@daranda speaking on stage at the #MJAC Blockchain Summit in London pic.twitter.com/NIergmBctG
— Ripple (@Ripple) June 13, 2018
Speaking about Southeast Asia, he called it a “big opportunity” and highlighted the way they have accepted modern technologies. He also said that the market is set to grow much bigger once the technologies start getting implemented and used.
Interviewer Clem Chambers, CEO of ADVFN, said that “The banks seem to be terrified of anything crypto shaped.” Aranda responded by saying that fear comes from a lack of understanding and that banks don’t need to understand crypto for them to use it. He gave an example that companies don’t need to know how the internet works for them to create a website.
On regulation, Aranda reiterated the company’s message that they aim to work with regulators. He said:
“Regulators are a key stakeholder in how this space is going to evolve. I think the process for us is about being proactive. Educate regulators and show them how it works during the existing framework.”
“SWIFT is a Really Serious Competitor”
Aranda emphasized the company’s focus on cross-border payments and that they want to be more competitive than traditional payments network SWIFT. He said:
“You don’t win by offering something that is a little bit better, typically you have to be ten times better. SWIFT is a really serious competitor. If we’re going to beat them, what we offer is going to have to be really good.”
Ripple was overlooked by Coinbase who chose to announce they will support 18th ranked cryptocurrency by market cap, Ethereum Classic (ETC), on June 12. This matches with their support of Bitcoin fork, Bitcoin Cash (BCH) on December 19, 2017, but comes a lot later after Ethereum forked from ETC. Ripple had offered to lend Coinbase more than $100 million worth of XRP to start letting users trade the asset but this wasn’t accepted.
Ripple recently announced a $50 billion research initiative to encourage universities across the world to lead blockchain development projects. The seventeen institutions listed so far include Princeton University and the Massachusetts Institute of Technology’s Computer Science and Artificial Intelligence Lab. Considering that blockchain developers are in high demand, this is set to provide a wider pool of talent for the industry.
On Ripple’s behalf, Ashton Kutcher donated $4 million in XRP to Ellen DeGeneres’ wildlife fund live on The Ellen Show. Ashton Kutcher and Guy Oseary, who was also on the show, are co-founders of Sound Ventures, a venture capital fund that was reported to have a $250 million portfolio in 2016. They wanted to express the charitable intentions of Ripple by supporting the fund which was set up to support conservation efforts for critically endangered species.