- Dutch central bank moved 86 tons of gold from North America to the UK for easier access.
- Ripple CEO Brad Garlinghouse says slow gold transfers show flaws in traditional finance.
- Garlinghouse says crypto could offer faster, cheaper cross-border value transfers.
Ripple CEO Brad Garlinghouse has pointed to the Dutch central banks decision to relocate gold reserves from North America to the United Kingdom as a striking example of the limitations of traditional financial infrastructure and a potential use case for crypto.
Dutch Central Bank Moves 86 Tons of Gold
The Dutch central bank, De Nederlandsche Bank (DNB), moved about 86 tons of gold from the US and Canada to the UK between March and August. The move represents more than a quarter of the banks gold reserves that were stored in New York and Ottawa.
DNB said it moved the gold to prepare for possible crises caused by rising geopolitical tensions. The gold is now stored at the Bank of England, where it can be traded and accessed more easily if needed.
DNB Governor Olaf Sleijpen said the move makes the banks gold reserves easier to use. He added that while the bank does not expect to need the gold in an emergency, it wants to be better prepared.
Garlinghouse Questions Traditional Finance
Meanwhile, Garlinghouse used the move to criticize the slow and outdated way traditional finance moves money and assets around the world.
Discover more
Currencies & Foreign Exchange
Engineering & Technology
News
“A good reminder on how finance still works today,” the Ripple CEO wrote.
He pointed out 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. He also mentioned that, back in the early 2010s, Germany took four years to move 674 tons of gold worth about $36 billion at the time from Paris and New York.
Garlinghouse said this slow process shows how far traditional finance still has to go, especially compared with the rapid pace of technology over the past decade.
Crypto Offers a Different Model
Garlinghouse argued that financial systems have not kept up with other areas of technology. He pointed out that self-driving cars can navigate cities, AI has changed how we work, and Starlink can provide internet almost anywhere. Yet moving money and assets around the world can still be slow and complicated.
He believes crypto offers a better solution. According to Garlinghouse, blockchain assets move value quickly and securely across borders, at a much lower cost than traditional financial systems.
XRP Supporters Highlight Blockchain Benefits
Garlinghouses comments also received support from an XRP Ledger validator, Vet. He argued that digital assets like XRP offer some of the benefits associated with gold while also providing the speed and flexibility of blockchain technology.
Vet described XRP as a neutral asset that does not rely on a specific bank, company, or country. He also highlighted its potential to make transfers faster and cheaper.
The validator also pointed to decentralized finance (DeFi), saying tokenized assets could support more financial applications without physically moving the underlying asset.
Geopolitical Risks Put Gold Storage in Focus
The Dutch central banks decision comes as rising geopolitical tensions are making banks rethink how and where they store their reserves.
DNB said the move has spread its gold more evenly. London now holds 32.1% of its gold, while its cash center in Zeist holds 30.8%. New York and Ottawa each hold 18.5%. Other central banks are also reviewing where they store their gold and how quickly they can access it.
For crypto supporters, the issue shows the global financial system still depends on old infrastructure, even though modern technology can move information and digital assets almost instantly.
Related:Ripple Signs Multi-Year Partnership With Florida Athletics