Drastic price fluctuations in cryptocurrency markets are often a test that separates short-term panic from long-term faith. Every sharp move in the case of XRP brings with it a deeper discussion not only on the charts but also on what this digital asset does. The recent uncertainties on the price side have turned attention back to the main problem that Ripple aims to solve in the first place, namely the inefficiency in global payment systems.
This long-term narrative gained momentum with the resurgence of an old video shared by X Finance Bull on the X platform in which Ripple CEO Brad Garlinghouse addresses central bankers. This video, shared at a time when the fluctuation in the XRP price made investors nervous, reminded us that we should focus on technological usage areas rather than market fear.
Structural Limits of Bitcoin in Payment Systems
In the video, Garlinghouse explains clearly why Bitcoin is struggling as a global payment infrastructure. The low transaction speed and high costs make Bitcoin disadvantageous, especially in frequent and low-amount transfers. These problems become more evident as the scale increases. According to Garlinghouse, Bitcoin, with its current structure, seems closer to the role of a store of value.
In contrast, XRP’s architecture is designed for real-time settlement and fast transfers. Ripple CEO emphasizes that XRP transactions are approximately a thousand times faster and a thousand times cheaper than Bitcoin. This difference offers a critical advantage in terms of reducing operational costs, especially for banks and payment providers.
End of Pre-Funding Period and Liquidity
Another important issue that Garlinghouse draws attention to is the “pre-funding” obligation in the correspondent banking system. Capital waiting in nostro and vostro accounts both creates inefficiency and slows down international transfers. Ripple’s vision is to provide “liquidity on demand” through digital assets and eliminate this idle capital problem.
Thanks to this model, financial institutions can provide instant funding even in money corridors with low liquidity. Digital assets act as a bridge between countries, allowing value to be moved quickly and safely. This structure, which Garlinghouse describes as the “Internet of Value,” applies not only to million-dollar transfers from large companies, but also to a small payment that a freelancer in the Philippines receives from a firm in London.
At this point, another current development regarding XRP also draws attention. News in recent weeks that some Asia-based payment providers have begun testing RippleNet-based solutions suggests that enterprise adoption is quietly but steadily advancing. Such pilot applications give important signals that the theory can be found in practice.
