Brad Garlinghouse, the CEO of Ripple, a FinTech company focusing on cross border payment systems, said that Ripple has zero inflation. In an interview on CNBC, Brad Garlinghouse said that the Ripple’s consensus algorithm is better than the Bitcoin and ethereum since it is developed to have zero inflation dynamic.
In other words, the consensus protocol does not allow for minting of more tokens. Ripple has 6.1 billion premined XRP tokens, which is something unique about its protocol. In this regard, it has a better standing than both Ethereum and Bitcoin which are proof work based cryptocurrencies.
In a statement which seems difficult to understand and accept, Brad Garlinghouse claims that Ripple does not control XRP because it is an open-sourced technology, just like Bitcoin. However unlike Bitcoin, XRP processes transactions speedily and is a carbon-neutral blockchain.
The Ripple CEO went on to paint an attractive picture about XRP by pointing out that its cross border payment system can unlock great potential for the entire world since it offers real-time, efficient, low cost transactions. This is not surprising considering that XRP ranks number 38 on CNBC Disruptor 50 list.
Sadly, Ripple has been involved in a high-level legal battle with the U.S. Securities and Exchange Commission since 2020. Commenting on this on-going legal case, Brad Garlinghouse says the complication surrounding the case arises from lack of clarity of the United States of America’s legislation on digital assets and cryptocurrencies.
“There’s a misunderstanding of how these technologies can be applied,” Garlinghouse lamented. “In the United States there has been a lack of regulatory clarity. Other countries, G20 markets, have invested the time and energy, either through legislation or rulemaking, to provide that clarity and certainty, which allows investors to participate, entrepreneurs to build.”
On the other hand, U.S Securities and Exchange Commission accuses Ripple, co-founder Chris Larsen and Garlinghouse of conducting an illegal securities offering, carried out to raise more than $1.3 billion.
Despite the assurance of Brad Garlinghouse that XRP has great fundamentals, XRP has been facing some challenging price movements. The upward gains made in April have been wrecked by the recent market crash. In April XRP sets a multi-year record of $1.9637. However, it experienced a reversal which took it down to $1.6435 by 18 of May.
This time, it seems that XRP price may decrease below the April 2021 one. Currently, XRP with a market cap of $46,734,669,286 and trading volume of $5,980,441,122 trades at around $1.01.
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