Key Takeaways
- Chris Larsen co-founded Ripple in 2012 to improve international payments with blockchain. He is also the founder of E-Loan, an online lending platform.
- Ripple helps make international payments faster, cheaper, and easier while working with regulators to build trust in finance.
- Larsen has raised concerns about Bitcoin’s energy use and pushed for switching to the more eco-friendly Proof-of-Stake system.
Who Is Chris Larsen?
Chris Larsen co-founded Ripple in 2012 to help banks make international payments faster and easier using blockchain technology. He previously served as Ripple’s CEO and Chairman of the Board but moved to Executive Chairman in December 2016.
Before Ripple, Larsen co-founded the online mortgage platform e-Loan in 1996 and the peer-to-peer lending platform Prosper Marketplace in 2005.
He studied Accounting and Finance at San Francisco State University, graduating in 1984, and earned an M.B.A. from Stanford Graduate School of Business in 1991.
Early Career
The E-Loan Story
In 1996 Chris Larsen and Janina Pawlowski started E-Loan, an online mortgage company. They recognized the potential of the Internet to cut out the need for agent commissions and other extra costs. In 1997, the E-Loan website became one of the first online mortgage lenders in the U.S. It lets people search for loans and apply directly, avoiding fees from brokers and agents.
The Prosper Marketplace
In 2005, Chris Larsen and John Witchel started Prosper Marketplace, and Larsen became the CEO. Prosper was an online platform where lenders and borrowers collaborated to set loan rates through an auction process.
In 2008, the company ran into issues with the U.S. Securities and Exchange Commission (SEC) because the rules at the time were made for banks, not tech companies. Prosper filed paperwork with the SEC to fix this and changed its system to use pre-set loan rates based on each borrower’s credit score. Also, in 2012, Larsen announced he had stepped down as CEO.
The Birth of Ripple
In September 2012, Larsen co-founded OpenCoin to develop a new payment system called Ripple, based on Ryan Fugger’s idea. In 2013, OpenCoin changed its name to Ripple Labs, Inc., and Larsen remained CEO.
Bitcoin’s Energy Use
In 2021, Larsen wrote an article asking Bitcoin to stop using the energy-heavy Proof-of-Work (PoW) system and switch to a more energy-efficient method. He thought a low-energy system was the best long-term solution for the environment but also saw the need for short-term fixes.
Pushing for a Greener Bitcoin
Larsen started the “Change the Code, Not the Climate” campaign with climate groups like Greenpeace. They set up a $5 million fund to support the cause. The goal was to push Bitcoin developers to cut the energy used in mining by changing how Bitcoin transactions are done.
Push for Proof-of-Stake (PoS)
Larsen wanted Bitcoin to switch to the eco-friendly Proof-of-Stake (PoS) system, like other cryptocurrencies such as XRP, Solana, and Cardano. He believed this change would reduce Bitcoin’s energy use, just like Ethereum’s planned move to PoS, which is expected to lower its energy consumption by 99%.
SEC Drops Case Against Chris Larsen
On October 19, 2023, the U.S. Securities and Exchange Commission (SEC) dropped its case against Ripple Labs executives Chris Larsen and Brad Garlinghouse. According to a court filing in New York, the SEC had been suing the company for breaking U.S. securities laws.
Ripple’s Role in the Cryptocurrency Ecosystem
Ripple is an important blockchain project in the cryptocurrency industry. It focuses on helping banks and financial companies make payments faster and cheaper, especially for international transactions. Ripple differs from other cryptocurrencies because it works closely with regulators to follow the rules and build trust. This makes it a big player in the future of digital finance.
Larsen’s Vision for Blockchain and Payments
Chris Larsen wants to grow blockchain use in finance, healthcare, and supply chains. He believes blockchain can make payments faster, cheaper, and safer, especially for international transactions. Larsen aims to use blockchain to improve traditional systems and make the financial industry fairer and more effective.
Final Thoughts
Chris Larsen has made a big impact on blockchain technology and digital finance. As co-founder of Ripple, he helped create a system that makes international payments faster, cheaper, and safer while working with regulators to build trust. Before Ripple, he also helped start E-Loan and Prosper Marketplace, changing how people lend and borrow money online. Larsen has also spoken about Bitcoin’s energy use, encouraging it to switch to a more eco-friendly system. Through his work, Larsen continues to shape the future of blockchain and improve financial systems worldwide.
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