Traditional payment methods are criticized for being cumbersome, time-consuming, and expensive, while cryptocurrencies are said to be more reliable, faster, and cheaper.
While discussions on this topic continue, Ripple CEO Brad Garlinghouse made important statements regarding the matter.
Speaking at a recent event, the Ripple CEO said the problem with current payment applications isn’t complexity; they’re simply not designed to communicate with each other.
Garlinghouse argues that the biggest challenge in the entire payment system arises when people try to send money internationally. He points out that international money transfers are slow, expensive, and prone to errors, sometimes causing money to get stuck in transit for weeks and requiring people to track it.
Garlinghouse points out that Ripple’s aim is actually to solve this problem.
At this point, Ripple CEO highlighted XRP’s role in payments, stating that an XRP transaction takes approximately four seconds to complete anywhere in the world.
“Transferring money using XRP costs a very, very small amount per transaction. Today, speed and cost are the only two things that really matter to people who actually use technology.”
To further clarify XRP’s role, Ripple’s CEO compared it to Bitcoin, stating that a Bitcoin transaction can take approximately 10 minutes and transaction fees can sometimes reach $10.
Garlinghouse specifically emphasized that this was not a criticism of Bitcoin, stating that his intention was to highlight the importance and critical role of XRP.
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Garlinghouse also emphasized that Ripple designed XRP not for individual investors, but for banks and financial institutions to solve their cross-border payment problems, adding that speed and low cost are the most important advantages of XRP technology.
At this point, the CEO stated that the company’s goal is to reduce delays and high costs in international money transfers, adding that the solutions developed by Ripple focus on a real problem in the current financial system.
*This is not investment advice.
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