Ripple CEO Confirms Rumor on MoneyGram's Use of XRP, Says Bitcoin and Crypto Activity Remains Largely Speculative

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Ripple CEO Brad Garlinghouse is confirming months of speculation that MoneyGram is directly responsible for an increase of XRP volume in Mexico.

In a new interview on the FintechBeat podcast, Garlinghouse says MoneyGram and additional clients of Ripple are contributing to a 50% boost in XRP transactions by sending dollars into Mexico using XRP as a bridge.

“It’s a public ledger. You can see where volumes are growing, contracting, and we’ve talked publicly about it – partly because of MoneyGram as well as some other customers who are using what we call On-Demand Liquidity. The product is moving [capital] so that you don’t have to pre-fund.

You can see that the volume of transactions between XRP and the Mexican peso, at a time when crypto trading dropped by about 50% over the summer, that volume grew by more than 50%. That’s because there’s real utility, and that’s a growing amount of traffic, and we’re continuing to grow that amount of traffic. So you can see the percentage of XRP to MXN – Mexican peso transactions. As that grows, it’s a pretty safe bet that a larger and larger percentage of that is actually utility and no speculation.”

Ripple and XRP enthusiasts have been tracking the increasing XRP volume on the Mexico-based crypto exchange Bitso for months, fueling rumors that MoneyGram is directly involved.

Source: Liquidity Index Bot/Twitter

Overall, Garlinghouse says the use of crypto assets including Bitcoin and XRP remains largely speculative, and he believes it may be a long time before cryptocurrencies are directly used by consumers.

“On XRP itself, and really I would say crypto broadly, I have publicly said before that 99.9% of all crypto trading is speculation today. The amount of real utility you’re talking about is really, really low. And that’s true within the XRP community as well…

I think one of the great misperceptions in this whole space – and I recognize not everybody agrees with me on this – [is that] we talk about these as cryptocurrencies. So let’s define what that means: a currency. Now for me, in a layman’s kind of a way, a currency is when I can walk into Starbucks and buy a cup of coffee with it. None of these are currencies today. None.”

As for economies coping with severe inflation and economic hardship, Garlinghouse says he can see crypto assets making a difference.

In major economies where crypto for purchases is seen as a primary use case, Garlinghouse says he doesn’t know what problem cryptocurrencies are solving.

“Often times people point out that there’s lots of non-G20 markets where – I get it – you’ve got an inflation problem. Those countries often have already lost control of their monetary supply. And so I’m not making that argument. But currency, to me, suggests a use case around fiat.”

You can check out the full interview here.

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