By Solomon Odunayo
The CEO of Ripple, Brad Garlinghouse, has recently pointed out the lapses in the traditional finance that he believes are affecting the huge part of the global economy.
In a nutshell, the particular challenge he mentioned is the basic service rendered seamlessly by Ripple, its digital token XRP, and other functional payment tools used by the cross-border payment firm.
Remittances Have Long Been Underserved By Traditional Finance
Brad Garlinghouse shared an observation with the cryptocurrency community members a few minutes ago. This is a reaction to the comment made by David Malpass, the President of the World Bank Group, to one of the recent articles shared by The Wall Street Journal, titled “Developing World Loses Billions in Money From Migrant Workers.”
Malpass’s comment supports the idea of keeping remittance channels open to support the poor as the spread of the new coronavirus ranges across the world. He stated that everyone must work towards the recovery of the battered global economy.
David Malpass noted:
“Good. The Wall Street Journal article on the importance of remittance flows to the developing world. As we address COVID19’s impact, we must work toward recovery for advanced economies, supporting the poor, & keeping remittance channels open.”
In response to Malpass’s opinion, the CEO at Ripple, Brad Garlinghouse mentioned the shortcomings of the traditional finance, which the Fintech he oversees has been solving over the years.
He pointed out that the poorest individuals are the ones paying the most, concluding that the remittances have long been underserved by traditional finance.
“It’s unacceptable that those who have the least, often pay the most. Remittances have long been underserved by traditional finance, even as they make up a huge part of the global economy. You want to help the unbanked? Start there.”
It’s unacceptable that those who have the least, often pay the most. Remittances have long been underserved by traditional finance, even as they make up a huge part of the global economy. You want to help the unbanked? Start there. https://t.co/LCPCEucLDJ
— Brad Garlinghouse (@bgarlinghouse) July 8, 2020
The Place of Ripple and XRP in the Cross-Border Payment Industry
Ripple, the US-based blockchain tech, has striven to build its brand in the payment industry over the years. Obviously, the cross-border payment giant still needs to exert more effort to keep challenging its competitors.
The company is keen to help the unbanked across the world. In an effort to expand its On-Demand Liquidity (ODL) to other regions, Ripple recently announced that it will soon launch its new XRP-powered ODL corridors in the Asia Pacific, the Middle East, and Africa.
In a recent interview published by City A.M, the Senior Vice President of customer success at Ripple, Marcus Treacher said:
“We have established On-Demand Liquidity corridors into Mexico, the Philippines, Australia, and Europe, and we’re hoping to further this expansion by opening corridors to APAC and EMEA this year.”