In the aftermath of Strike’s Shopify integration, RippleNet GM Asheesh Birla sought to Twitter to correct certain “misconceptions” concerning Ripple’s On-Demand Liquidity (ODL). Strike, a digital payments network based on Bitcoin’s Lightning Network, said last week that it has integrated with Shopify, enabling merchants to accept Bitcoin payments from clients all around the world in US dollars. While making comparisons, some Twitter users stated that this might have a detrimental influence on Ripple’s ODL.
RippleNet GM view on Ripple’s ODL
He explains in a series of tweets that employing digital assets is one part of the ODL solution. The Ripple team exhibits competence in markets against ultra-hard fiat currencies (like PHP, MXN, etc.) and addresses liquidity issues by ramping up its users. He also points out that, despite unique hurdles such as volatility and regulatory issues related to crypto liquidity, Ripple currently has more than 20 ODL marketplaces operating as it expands its worldwide reach.
On Twitter he shared the followings:
“…The cryptocurrency market has historically been more volatile than fiat currencies, while nevertheless offering steady FX rates. Solving the crypto liquidity problem will take time. The whole crypto market gets more effective and economical to service the long-tail of regions that require it the most as liquidity develops..…”
Crypto markets have historically been more volatile than fiat, and delivering reliable FX rates w/ crypto liquidity takes time to hone and perfect. As liquidity grows, the entire market becomes more efficient / cheaper to serve the long-tail of destinations that need it most. pic.twitter.com/mQHVFqAMLj
— Asheesh Birla (@ashgoblue) April 11, 2022
He concluded the explanation by saying the followings:
“…Swapping just the bitcoins element using Bitcoin’s Lightning Network type solution is like saying that GM [RippleNet GM Asheesh Birla] can compete with Tesla if he uses an Energizer battery. In this circumstance, there’s a lot more to consider.…”
What is Ripple’s ODL?
Ripple’s On-Demand Liquidity (ODL) allows clients to send money throughout the world immediately and at any moment without the requirement for pre-funded accounts.
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