The human mind doesn’t deal well with large numbers.
When we talk about “quadrillions” of dollars in the market for SWIFT and other international remittances, the scale of the value transfer is difficult to grasp. In addition to the sheer scale of the value being moved, consider another factor – a factor that many economists and central banks have long been unhappy with:
It takes too long.
When money is in transit for days at a time while banks rely on “hours of operation” across the globe, the capital is, in essence, removed from the money supply. Only when the transaction is clearly settled can the money then be used again for a new purpose. Economists are critically interested in this, from the IMF, to individual countries’ central banks, even to the local economies that benefit from a higher velocity of money.
Brad Garlinghouse used an example during a recent interview with Sam Maule from Fintech Insider during the SWELL Conference.15 He indicated:“Truly the most efficient way for me to get money to London today would be to go and buy a ticket at the airport here in Toronto and fly it there. That’s a crazy thing. I mean, I can stream video from the space station, yet I can’t move my own money from point A to point B efficiently…”
This example is a dramatic anecdote that underscores how broken the current value transfer system is when attempting to meet the expectations of consumers and customers.
Already, over 70 banks are currently using Ripple software in production to solve many of the problems obstructing real-time settlement. xCurrent enables banks to go from days to real-time. In addition, Ripple created a fintech innovation that enables any organization or individual to transform value from one currency to another using a digital asset, XRP.How Ripple & XRP Saves Banks Money
Ripple is very matter-of-fact about why banks, financial institutions, remittance services, large...