CEO Ripple Reveals Signs: $XRP is About to Replace SWIFT

In a recent video shared by cryptocurrency commentator Xaif (@Xaif_Crypto), CEO of Ripple, Brad Garlinghouse, criticized the persistent issues in SWIFT's infrastructure, highlighting the inefficiency affecting both speed and cost in global transactions. Garlinghouse made a striking comparison between SWIFT and the expectations of modern technology. "SWIFT is reported to have a failure rate of 6%,” he said. To emphasize the importance, he added, "Imagine if 6 out of every 100 Google searches returned unsuccessful results." This illustrates the difference between consumer technology standards and the outdated processes still used in international finance.

The Inefficiency of Current Systems Garlinghouse revealed that the issue could be even more serious for some large corporations. According to him, a board observer at Ripple, currently the Chief Financial Officer of a Fortune 50 company, reported that this error rate reaches up to 11%. Garlinghouse explained that although these errors can be fixed, doing so is not efficient. "Human intervention is needed, and this slows down progress and clearly comes with associated costs," he noted. In addition to the direct costs of these delays, Garlinghouse emphasized that the most significant consequence is the inefficient use of capital. Organizations are forced to keep a large amount of funds in pre-funded accounts to support the agent banking model. 10 Trillion USD in Liquid Assets is Stuck Garlinghouse cited estimates from major consulting firms that around $10 trillion is locked in accounts worldwide just to maintain the current payment infrastructure. This trapped liquidity prevents banks from using capital more efficiently. This is a major issue that XRP aims to address. "If we can make it more efficient, we could significantly change even the economy of many different payment companies, banks, and once again, make it more efficient for global trade," Garlinghouse said. He emphasized that unlocking these capital resources could enable financial institutions to fulfill their core mission. A Better Way to Transfer Money Garlinghouse positions Ripple's technology and approach as a means to achieve this goal, aimed at modernizing cross-border payments and enabling more efficient global trade. This CEO predicts that XRP will account for up to 14% of SWIFT's transaction volume within 5 years, and Ripple's approach seeks to address the weaknesses of SWIFT and eliminate errors to make this goal achievable. His comments reflect a growing sentiment among fintech leaders that the traditional financial system needs reform. When SWIFT replaced Telex in 1977, it was a revolutionary system. However, nearly 50 years have passed, and it is time for XRP to replace SWIFT just as it did with Telex. This will provide users with a better, cheaper, and faster way to transfer money globally. $XRP {spot}(XRPUSDT)