A recent exchange between a banker and Ripple CEO Brad Garlinghouse drew attention to issues of delay in bank transfers and the potential improvements offered by Ripple's technology.
Criticism of Bank Transfer Delays
During an interview, the banker shared his experience of transferring funds between the Bank of England and Centendaire UK, which cost $10 and took a full day. He pointed out that such delays pose risks as funds remain uninsured during the wait. These issues, he stated, particularly affect low-income families.
Ripple's Role in Providing Liquidity
Garlinghouse clarified that Ripple is not a direct liquidity provider. He emphasized that Ripple's technology connects institutions to the existing liquidity in digital assets. About $50 billion has moved in the past 24 hours among digital assets like XRP, Bitcoin, and Ether.
The Significance of XRP and Its Utility
Garlinghouse testified before the Senate Banking Committee, discussing XRP's role in solving financial problems. He noted that XRP allows for fast and low-cost cross-border payments and is critical to Ripple's mission of creating an Internet of Value, where money flows as freely as information.
The recent incident demonstrates that the traditional banking system remains slow and costly, while XRP offers a more efficient solution for settlements and improvements in financial systems.
