Ripple CEO, Brad Garlinghouse, who is the man behind popular cryptocurrency XRP, has predicted the downfall of the cryptocurrencies. The Ripple boss said that the value of cryptocurrencies might plunge to £0 and the future of digital currencies is very uncertain.
Speaking at the Goldman Sachs' Technology and Internet Conference on Tuesday, he said he thinks most of the digital currencies would lose its value. "Long term value would be dictated by the utility of the asset," he said.
He also added he believes most of these digital tokens are not very useful for transactions, thus there is no reason for them to exist. XRP holds the third highest market capitalization behind Bitcoins and Ethereum.
However, he has highlighted that bitcoins would be used as a store of value like gold, but he asserted that it won't be used for making payments.
“Despite the statement of Jaime Dimon, I think that this is an asset class that I don’t think is going away anytime soon,” Brad said, referring to the JPMorgan Chase CEO negative comments about Bitcoin earlier this year.
'Bitcoin is going to solve different problems,' he added.
Further expalining the way of functioning of ripple, he said that it uses blockchain technology to record transactions between banks. He also told that his company uses its own XRP cryptocurrency to make payments as it acts as a bridge for banks and makes it easier to move money internationally.
He hopes that soon all the major banks would adopt Ripple's xCurrent payment software for money transfer instead of the conventional SWIFT software for transferring money across the borders. He also insists, "If we want to bring cryptocurrency into the main arena, we must work within the system and must not use crytptocurrencies to circumvent government regulation and financial institutions."
Talking about the future of Ripple, he said, "we would only be able to grow when large banks agree to buy our software. But, the biggest hurdle in this direction is that many banks have other IT related projects which they place ahead of Ripple, in terms of priority."
When asked whether the large banks would accept cryptocurrencies, he voiced a optimistic approach but didn't mention a specific time frame.