Ripple CEO Slams Traditional Finance with Example of Slow Gold Transfers

Ripple CEO Brad Garlinghouse has pointed out the limitations of traditional financial infrastructure by citing the Dutch central bank's recent decision to move its gold reserves from North America to the UK.

The Dutch central bank, De Nederlandsche Bank (DNB), moved about 86 tons of gold worth approximately $11 billion from the US and Canada to the UK between March and August. This relocation represents more than a quarter of the bank's gold reserves that were stored in New York and Ottawa.

Garlinghouse criticized traditional finance for its slow pace, stating that 'about 70% of the $11 billion worth of gold involved in the larger transfer was not physically moved.' Instead, the gold was sold in New York and bought again in London. This process highlights how far traditional finance still has to go in terms of speed compared to other areas of technology.

Garlinghouse believes that blockchain assets offer a better solution for cross-border value transfers, moving value quickly and securely across borders at a much lower cost than traditional financial systems.