Ripple CEO compares company’s XRP ownership to Saudi Arabia’s oil

Ripple’s CEO, Brad Garlinghouse said that he believes that Ripple’s XRP token is not a security at the CB Insights Future of FinTech conference. He also offered three arguments to his case.

The first argument presented by Brad involves the XRP Ledger. He made it very clear that if Ripple shut down tomorrow, the XRP Ledger would continue to operate. He said:

“Its open-source, decentralized technology that exists independent of Ripple.”

His second argument was that XRP did not fall under the technical definition of a security. He said:

“If you buy XRP, you are not buying shares of Ripple. We are a private company, we have investors…XRP does not give you access to dividends or profits that come from Ripple.”

He then stated that XRP is being used as a utility by Ripple to solve the problem of providing fast and secure cross-border payments. Securities by definition are not utilities and are used as a claim to the profits made by the company in return for the company having permission to use those funds.

It is a well-known fact that Ripple owns 60% of all XRP tokens. When asked about this, Brad said:

“I don’t think that our ownership of XRP gives us control, because it is an open-source decentralized technology. Saudi Arabia owns a lot of oil, but it doesn’t give them control of oil.”

Coinbase has still not added XRP as a tradeable currency, and this question was brought up by the interviewer. Garlinghouse stated that exchanges around the world make decisions that are best for them. He went on to say:

“I can’t speak for Coinbase…but I think it’s in Coinbase’s interest. Ultimately Coinbase will decide what it’ll decide.”

He emphasized that the consumer-speculator is not Ripple’s target market and that their target market is financial institutions. He further added that these financial institutions can solve a big problem measured in trillions of dollars using Ripple’s technologies such as xRapid and XRP.

On the crypto market, he said:

“The crypto markets have been different, where pragmatism isn’t ruling the day. You have these holy wars [where] its more about ideologies. “

The post Ripple CEO compares company’s XRP ownership to Saudi Arabia’s oil appeared first on AMBCrypto.