Ripple CEO Brad Garlinghouse spoke about the issues in the international payment system, proposing XRP as a solution.
Inefficiencies of Current Payment Systems
In a recent video shared by crypto commentator Xaif, Garlinghouse highlighted the inefficiencies of SWIFT’s infrastructure impacting the speed and cost of global transactions. He made a striking comparison: “SWIFT has a reported error rate of 6%.” This emphasizes the disconnect between modern technology standards and the outdated processes still used in international finance.
Trapped Liquidity Estimated at $10 Trillion
Garlinghouse mentioned estimates from major consulting firms suggesting that about $10 trillion is locked in accounts worldwide solely to maintain the current payment infrastructure. This trapped liquidity prevents banks from using their capital more productively. He stated, “To the extent we can make that more efficient, we can dramatically change the economics of many different payment companies and banks.
More Efficient Ways to Move Money
Garlinghouse emphasized that Ripple’s technology could modernize cross-border payments and enhance global commerce. He predicts that XRP will capture up to 14% of SWIFT’s volume within five years, signaling the need for reform in the legacy financial system.
Garlinghouse believes that XRP has the potential not only to replace SWIFT but also to provide significant benefits for market participants, making transactions faster and cheaper.
