So many bank and government officials have gone on record to say that cryptocurrencies are not actual currencies that it’s become kind of a standard statement.
It is, therefore, surprising to see that Ripple CEO Brad Garlinghouse has joined the fray echoing the same sentiment, even when referring to his own token, XRP.
“I don’t call this cryptocurrency. It’s not currency. I can’t go to Starbucks or Amazon and use—and you know, somebody inevitably will be like, ‘Well, I have one example where I bought something with a bitcoin.’ And then I usually say, ‘Well, did you do a second transaction?’ It’s not actually a currency. These are digital assets. If the asset solves a real problem for the customer, then there’ll be value in the asset,” he said during the Yahoo Finance All Markets Summit.
While others cite wild volatility as a reason why cryptocurrencies are not real currencies, Garlinghouse appears to use the same reasoning that made Steve Wozniak get rid of his entire Bitcoin holdings.
Wozniak was upset that Bitcoin didn’t turn out to be that universal currency he could use while traveling around the world, and instead became a speculative asset that gave him angst every time its price took a turn for better or worse.
Garlinghouse appears to dismiss the idea of Ripple, Bitcoin, and the like being labeled as legitimate cryptocurrencies because a large proportion of people are holding them as speculative investments rather than using them to do commerce.