Ripple’s Garlinghouse Advocates for Crypto in Central Bank Transactions
- De Nederlandsche Bank transferred approximately 86 tonnes of gold from March to August.
- 59 tonnes were sold in New York and replaced with gold purchased in London, while another 27 tonnes were physically moved.
- Garlinghouse highlighted that most value was transferred without the physical movement of gold bars across the Atlantic.
- He compared the current scenario to the growth of cryptocurrencies, which increased from $1.5 billion to around $2.7 trillion since 2013.
- Germany’s Bundesbank took four years to transfer reserves of gold back to Frankfurt from Paris and New York between 2013 and 2017.
Garlinghouse’s comments underline the inefficiencies in traditional reserve systems that rely heavily on location and custody, questioning why financial value still depends on these processes amid rising digital asset adoption.
The discussion comes as central banks explore faster methods for value transfer, with Garlinghouse advocating for crypto as a solution, especially given the significant delays seen in past gold transfers like Germany’s four-year process. (Source)
