Ripple CEO Says XRP Can Fix the Problem This Bank CEO Is Facing

A video recently shared by HighVibeAssets, co-founder of AlgoPear and a prominent figure in the cryptocurrency community, captured a conversation between a bank chief executive and Ripple CEO Brad Garlinghouse. The exchange focused on the inefficiencies present in cross-border payments and the nature of Ripple’s liquidity solutions. This clip offers insight into how traditional banking leaders perceive the integration of digital assets into global payment systems.

Payment Delays and the Cost of Inefficiency

During the discussion, the Bank CEO recounted an experience while working on a short-term fellowship at the Bank of England. He described transferring rent funds to a UK-based institution, Centendaire, and noted that the process was both slow and costly. The transaction took 24 hours to complete and cost $10 in fees, highlighting the friction that persists in cross-border banking transfers even between major financial centers.

The CEO noted that while the amount might seem minor to some, it still illustrates inefficiency in the system. He added that the funds were uninsured during the 24-hour transfer window, emphasizing a lack of protection for money in transit. He acknowledged that some may overstate the severity of such problems but maintained that the situation raised legitimate concerns about the security and reliability of existing financial rails.

Ripple’s Role in Liquidity Access

Responding to a question about whether Ripple could experience a run similar to one faced by a traditional institution, Garlinghouse distinguished what Ripple offers and what it does not. He clarified that Ripple “doesn’t provide liquidity,” but instead “provides technologies that allow you to access liquidity that exists in the marketplace.”

Garlinghouse cited data from the broader digital asset market, noting that in a recent 24-hour period, roughly $50 billion worth of liquidity was traded across cryptocurrencies such as XRP, Bitcoin, and Ethereum. He questioned what a run on Ripple would even look like, suggesting that the company’s technology operates independently from the speculative volatility that sometimes affects the wider crypto ecosystem.

Speed, Security, and Market Confidence

Garlinghouse went on to highlight that transactions using XRP can settle in as little as 3 seconds, eliminating the waiting periods and exposure risks described by the Bank CEO. This rapid settlement capability, he said, demonstrates the value of digital asset technology in addressing long-standing inefficiencies in global finance.

The exchange underscored the ongoing gap between traditional banking infrastructure and blockchain-driven systems designed for instant payments. Ripple intends to revolutionize traditional cross-border payments using XRP, and this approach will address the problems faced by bank CEOs.