In a recent video, Brad Garlinghouse, CEO of Ripple, presented arguments for replacing SWIFT with XRP, highlighting significant shortcomings of the traditional banking system.
Critique of Traditional Banking System
In the video shared by Levi of Crypto Crusaders, Brad Garlinghouse criticized the SWIFT network, pointing out the high error rate in its operations. "I’m always amazed, SWIFT has a reported error rate of 6%," he noted.
Liquidity Issues in the SWIFT System
Garlinghouse also highlighted a serious issue with trapped liquidity in traditional banking systems, claiming that about 10 trillion dollars is locked in accounts due to outdated system requirements. This, he stated, hampers the efficient use of funds.
Ripple's Mission: Replacement, Not Partnership
Garlinghouse emphasized that Ripple's strategy is not to collaborate with SWIFT but to replace it. "We’re not partnering with SWIFT, we’re replacing them," he exclaimed, illustrating how RippleNet and the On-Demand Liquidity system facilitate significantly quicker international payments.
Brad Garlinghouse's comments reflect Ripple's ambitious plans for transforming the global financial system, offering more efficient solutions for international payments.
