Ripple CEO Brad Garlinghouse once again drew attention to digital assets, revealing the advantages of XRP over Bitcoin during a meeting with representatives from the International Monetary Fund and the Swiss National Bank.
Garlinghouse's Case Against Bitcoin
In a widely circulated video clip, Garlinghouse outlined the technological limitations of Bitcoin, highlighting its slow transaction speeds and high costs. According to him, Bitcoin's architecture, while revolutionary at its inception, has become a bottleneck for practical applications, particularly in the realm of cross-border transactions.
The Benefits of On-Demand Liquidity
Garlinghouse explained that a key principle of Ripple's vision is to eliminate the need for pre-funding accounts in global financial transactions. The current system, relying on nostro and vostro accounts, is costly and often inaccessible to smaller players. Digital assets like XRP can provide global liquidity on demand, enabling a more democratized and efficient payment infrastructure.
XRP's Technical Edge
Garlinghouse emphasized that XRP is better suited for fast transactions and low-value payments due to its architecture, which employs a consensus protocol. Unlike Bitcoin's proof-of-work system, which requires significant energy consumption, XRP accelerates transactions while keeping costs minimal. This positioning allows Ripple to effectively compete in the payment market, especially in today's digital age.
Brad Garlinghouse's address to participants at the IMF and Swiss National Bank highlights shifts in the narrative surrounding Bitcoin and XRP. Ripple aims to create an Internet of Value, using XRP as its backbone, which could fundamentally change the ways money is transferred on a global scale.
