Ripple CEO Believes That Blockchain Technology Is “Mostly Hype”

One of the guests of this year’s Stifel Cross Sector Insight Conference in Boston was Ripple CEO, Brad Garlinghouse. Mr. Garlinghouse has been in this position for the last three years and has a professional background in companies like Yahoo and AOL. However, we cannot say that he has a special expertise in blockchain technologies: Although he has worked in technology-related companies, Mr. Garlinghouse has no professional background in blockchain industry.

Brad Garlinghouse made remarkable and interesting comments during the conference. First and foremost, he seems to think that blockchain technology is “overrated”. According to Mr. Garlinghouse; “… even Steve Wozniak has said that he sees a world where Bitcoin is the dominant currency. I think that’s absurd. I do not think that any major economy will allow that to happen. By the way, it does not make sense. Bitcoin is really controlled by China. There are four miners in China that control over 50% of Bitcoin. How do we know that China will not intervene? How many countries do you want to use a Chinese-controlled currency? It’s just not going to happen.” (1)

Garlinghouse continues “… Blockchain will not disrupt banks. It will just play an important role in the way our system works. Bitcoin is not the panacea we thought it would be. “

What does Mr. Garlinghouse, who does not trust BTC and blockchain technology, think about his own project? “Bitcoin today takes 45 minutes to settle a transaction. Banks will use what is efficient and cheaper. And if you deliver a better product at a better price, they will use it.”

So, Ripple Is For Banks?

Mr. Garlinghouse may have caused some question marks about the purpose of the Ripple project with these statements. It is clear that he does not think crypto currencies will be able to take place of Fiat currencies and Ripple is a project that supports the current banking system, instead of changing it. In other words, Mr. Garlinghouse has no intention of changing the rules of the economy or creating a decentralized one: He is trying to develop a “product” that is easier to use for banks.

This is an unsettling situation in many ways. The whole purpose of crypto-currencies is to create a new kind of economy which is not controlled by anyone. If we cannot get rid of the banks, why should we bother? If you still have doubts about Mr. Garlinghouse’s intentions, read the following statement:

“I don’t think about the digital asset market. I think about the customer experience. There are millions unbanked or underbanked. When I think about the transformation, it is fundamentally changing the way millions participate in banking.”

So, more sheep to sacrifice because the current ones started to see there may be an alternative way to do things, eh?

What do you think?

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