'Dozens of Banks' to Use Cryptocurrency by 2019

Brad Garlinghouse, CEO of Ripple believes dozens of banks will use blockchain products by the end of the year.

Ramy Caspi
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In an interview with CNBC, Brad Garlinghouse, CEO of Ripple stated that he believes dozens of banks will be using cryptocurrency/blockchain products by the end of the year. 

Ripple has its own solution designed specifically for money transfers and banks. Right now, the company is developing a solution that allows cross-border money transactions between banks in a faster and cheaper way than the current system allows. It's based on blockchain, the technology that underpins many cryptocurrencies.

xRapid is for payment providers and other financial institutions who want to minimize liquidity costs while improving their customer experience. Because payments into emerging markets often require pre-funded local currency accounts around the world, liquidity costs are high. xRapid dramatically lowers the capital requirements for liquidity.

Another product designed by Ripple is xCurrent.

xCurrent is Ripple’s enterprise software solution that enables banks to instantly settle cross-border payments with end-to-end tracking. Using xCurrent, banks message each other in real-time to confirm payment details prior to initiating the transaction and to confirm delivery once it settles.

Because XRP has a four-second transaction time, this process would be quick. Some companies, such as Western Union and Moneygram, have begun trialing xRapid, but none have committed to it fully.

"I've publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool," Garlinghouse told CNBC at the Money 20/20 Europe fintech conference in Amsterdam, Netherland. "You know, by the end of next year, I would certainly hope that we would see you know in the order of... dozens."