Speaking at the XRP APEX 2025 event in Singapore, Ripple $2.14 CEO, Brad Garlinghouse, announced that XRP crypto currency can play an important role in international money transfers. In the next five years, Garlinghouse shared the estimation that the XRP could achieve 14 %of the total international volume carried by the SWIFT system. The basis of this foresight lies in liquidity solutions that XRP provides in cross -border payments.
Basic differences between XRP and SWIFT
SWIFT offers messaging infrastructure for cross -border money transfers between global banks. However, it only provides information transmission; It does not perform the physical movement of money. For example, SWIFT messages inform the banks in a transfer from the USA to Europe, but real fund transfer passes through more than one intermediary bank. This extends the process and increases the costs.
Ripple adopts a different approach. Technology aims to transfer not only the message but also money between banks directly and simultaneously. The company argues that this system can radically change liquidity management in international payments. Garlinghouse emphasizes that SWIFT’s model keeps liquidity under the control of banks, and that the main transformation will be experienced in this area.
Liquidity advantage of blockchain technology
Ripple’s Blockchain -based system claims a faster and more efficient solution than traditional methods. Using the XRP as a bridge currency, the system allows instant and low -cost transformation between different national currencies. This reduces the necessity of having large amounts of local currency liquidity in many countries and reduces operational expenses.
In traditional financial systems, message transmission and money transfer processes are usually carried out separately. Ripple makes it possible for both operations to take place at the same time thanks to Blockchain technology. It is suggested that this can reduce risks while increasing the process rate and transparency. However, XRP’s achievement of this target is seen depending on the adaptation rate of financial markets and regulatory frameworks. Experts say that confidence in large -scale payments will play a key role in adopting technology.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
