Matt Leising is a journalist at Bloomberg who has covered financial markets for 15 years. Today, his reporting has been completely engulfed by cryptocurrencies. There are so many dramatic stories, it’s hard to pick what to focus on.
Today, we discuss two topics he has covered recently: Ripple and Tether.
Ripple is a company that makes enterprise blockchain solutions for global payments. That sounds like the future, and it is no surprise that people would want to buy into Ripple if possible. Ripple has been around for 7 years, and they have a strong team, and relationships with major financial institutions.
One of Ripple’s early projects was a currency called XRP. The goal of XRP was to make a fast, scalable digital asset that would facilitate currency exchange among banks. We covered Ripple and XRP in previous episodes with David Schwartz and Greg Kidd.
XRP remains in circulation, but Ripple the company has shifted development resources away from XRP, and towards RippleNet, which seeks to replace the aging SWIFT code system for banks. Today, XRP is being experimented with by several money transfer companies, but the digital currency is not widely used for anything–well, other than speculation.
In the tremendous cryptocoin bull run of early 2018, XRP shot up as sharply as almost any other coin. In an article about Ripple, Matt Leising tried to get to the root explanation for why this occurred. Was it a sudden market recognition of some long term value of XRP? Was it a stampeding herd of people who did not know the state of XRP? Was it a pump and dump?
A few days after publishing his article about Ripple, Matt wrote about Tether. Tether purports to be a “stablecoin”–a digital currency which is pegged to the value of something less volatile. Stablecoins are useful in that they can reduce friction of exchange between tokens. Without a stablecoin, you might have to transfer from one cryptocurrency to USD, which probably involves the US banking system.
There’s a good discussion of stablecoins in our episode with Vlad Zamfir and Haseeb Qureshi on cryptoeconomics.
This was Matt’s second appearance on the show, and it was a blast to have him back on. In his last episode, he discussed the infamous DAO hack, which led to an Ethereum fork. To find that episode as well as links to learn more about the topics described in the show, download the Software Engineering Daily app for iOS or Android. These apps have all 650 of our episodes in a searchable format–we have recommendations, categories, related links and discussions around the episodes. It’s all free and also open source–if you are interested in getting involved in our open source community, we have lots of people working on the project and we do our best to be friendly and inviting to new people coming in looking for their first open source project. You can find that project at Github.com/softwareengineeringdaily.
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