In a powerful video clip shared by Levi of Crypto Crusaders, Ripple CEO Brad Garlinghouse delivered a pointed critique of the traditional SWIFT banking network, emphasizing XRP’s growing role as a modern solution. “I’m always amazed, SWIFT has a reported error rate of 6%,” Garlinghouse stated, highlighting the inefficiencies plaguing the decades-old global payment system.
Garlinghouse didn’t stop there. “We have an observer on our board of directors who’s the CFO of a Fortune 50 company,” he explained. “He told us that in their experience, doing a lot of cross-border transactions, they see an 11% error rate.” These failure rates are not only alarming but unacceptable in an age that demands speed, transparency, and precision.
Human Errors, Delays, and Mounting Costs
Although these errors are often correctable, Garlinghouse pointed out that the reliance on manual intervention slows everything down. “This isn’t to say these aren’t correctable,” he said, “but human intervention is required, and it slows things down, and obviously, there are costs associated with them.”
XRP IS REPLACING SWIFT! pic.twitter.com/54s5JEqKuo
— Levi | Crypto Crusaders (@LeviRietveld) July 27, 2025
Under SWIFT’s model, payments must pass through several correspondent banks, each introducing potential points of failure and delay. This leads to high transaction fees, settlement uncertainty, and inefficiency that Ripple believes should no longer exist in a digitally connected global economy.
The $10 Trillion Liquidity Trap
Garlinghouse went on to underscore what he described as SWIFT’s most damaging flaw: the global liquidity trap. “The most impactful issue is the trapped liquidity that’s inherent in cross-border and correspondent banking networks,” he said. “We’ve seen estimates from major consulting firms suggesting that $10 trillion is trapped in accounts around the world, just to enable the current correspondent banking infrastructure.”
This idle capital, locked in Nostro and Vostro accounts, is essentially frozen. It can’t be used productively because it’s needed to support legacy systems. According to Garlinghouse, “To the extent we can make it more efficient, [we] can dramatically change the economics of many different payment companies and banks.”
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Ripple’s Mission: Replace, Not Partner with SWIFT
Unlike other blockchain companies looking to integrate with legacy systems, Ripple’s strategy is bold and unapologetic. “We’re not partnering with SWIFT, we’re replacing them,” Garlinghouse declared in a previous statement, and his latest remarks reinforce this stance.
Through RippleNet and its On-Demand Liquidity (ODL) system, powered by XRP, the company is enabling institutions to bypass pre-funded accounts and settle international payments in seconds. The efficiency, accuracy, and liquidity optimization XRP offers stand in stark contrast to SWIFT’s sluggish and error-prone framework.
XRP Poised to Redefine Global Payments
Brad Garlinghouse’s comments, as shared by Levi of Crypto Crusaders, paint a clear picture: Ripple isn’t just disrupting global finance, it’s reinventing it. By solving SWIFT’s deep-rooted problems, error rates, delays, and trapped liquidity, Ripple positions XRP as the future backbone of international payments.
As adoption grows and global institutions increasingly seek faster, cheaper, and more reliable solutions, XRP’s role as a replacement to SWIFT becomes not just possible, but inevitable.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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