The head of products at Ripple Labs Inc. – Asheesh Birla, was recently in an interview with the Crypto Trader of CNBC. The one-on-one interview session tackles the use cases of XRP (XRP) and the overall software solutions suite of Ripple Labs Inc., including xRapid and xCurrent.
Why Financial Institutions Prefer Using the Products of Ripple that Utilizes XRP
When Asheesh Birla was asked why financial institutions prefer using the products of Ripple such as xRapid, which uses XRP, he said that the overall volatility and costs involved are way lesser than fiat.
Birla said: “they asked their customers – and using xRapid, the volatility used by their end customers, the xRapid end clients are using, is just a couple of seconds. So they asked them how they feel about a few seconds of XRP volatility.”
Overwhelmingly, they said they would prefer a few seconds of XRP volatility over holding fiat currencies for days or even weeks. They said this because the volatility of a couple of seconds of XRP vs the volatility of one week of holding fiat is a massive difference. They would prefer the few second of XRP volatility any day.
According to the firm, smaller startups and financial institutions are more likely to see considerable savings by utilizing xRapid for international settlements. The head of products at Ripple also compared the utility of XRP and that of Bitcoin (BTC) and responded to the criticisms that XRP (XRP) is not decentralized because of the direct involvement of Ripple Labs Inc. with the digital currency and the fact that the firm owns sixty percent of the total supply of the coin, with ninety-one percent locked in escrow.
XRP (XRP) Price Today – XRP / USD
XRP is currently valued at $0.0324 after a decrease of less than one percent over the past twenty-four hours. The current market cap of the digital currency is $12.81 billion and its trading volume over the past twenty-four hours is $158.77 million.