Ripple CEO Claims Cryptocurrency Can Accelerate Central Bank Fund Transfers

Brad Garlinghouse, CEO of Ripple, claimed that cryptocurrency can facilitate faster fund transfers between central banks, citing the Dutch central bank (DNB) as an example of gold relocation. He wrote on X, "Cryptocurrency is an ideal use case for fast, secure, and low-cost global value transfer." DNB relocated approximately 86 tons of gold between March and August of this year, of which 59 tons were processed by selling in New York and repurchasing in London. Only the remaining 27 tons were physically moved. Garlinghouse referenced the case of gold repatriation by the German Bundesbank, explaining that it took four years to move 674 tons of gold to Frankfurt from 2013 to 2017. DNB currently stores 32.1% of its gold in London, 18.5% each in New York and Ottawa, and the remaining 30.8% in Jaisalmer. DNB stated that the purpose of the relocation is "to increase transaction capacity and prepare for crises." While Garlinghouse asserted the superiority of cryptocurrency technology, there has been no confirmation of an official signal from policymakers regarding the adoption of cryptocurrency. For central banks to change their gold settlement methods, they need to maintain control over monetary policy, ensure the functioning of interest rate transmission mechanisms, and assess macroeconomic impacts.

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