Experts reveal: Ripple builds a "Blockchain Banking Empire" using XRP, warning it could disrupt the global financial order.

Ripple's XRP is becoming a key player in the transformation of the global financial system, but experts have differing opinions on its true intentions. Canadian entrepreneur Jeff Booth warns that Ripple may simply be replicating traditional banking models on the blockchain rather than truly innovating the financial system; meanwhile, analyst Pumpius cites the views of Ripple's CEO, believing that XRP will surpass gold and diamonds to become the infrastructure for global settlement in the digital age. This debate reveals critical questions about how cryptocurrencies are reshaping the global financial landscape.

Ripple's Dual Strategy: Innovation or Replication of Traditional Banking?

In recent years, the positioning of Ripple and XRP in the cryptocurrency space has been highly controversial. As Ripple deepens its partnerships with global financial institutions, a key question arises: is Ripple truly disrupting the traditional financial system, or is it merely moving it onto the Blockchain?

Market expert Xaif Crypto recently shared a thought-provoking video on platform X (formerly Twitter), focusing on the views of Canadian entrepreneur and author Jeff Booth. Booth is known for his bestselling book "The Price of Tomorrow," and in the video, he presents a bold perspective: XRP may essentially be rebuilding the traditional banking system on the Blockchain rather than truly disrupting it.

A Blockchain Replica of Traditional Banking Models?

According to Booth's analysis, the traditional banking model has remained fundamentally unchanged for centuries: creating money through lending and collecting interest. He points out that while blockchain technology itself has revolutionary potential, its transformative power may be significantly diminished when this technology is applied within closed systems controlled by governments and banks.

"Copying traditional banking operations on a decentralized ledger faces both philosophical and practical challenges," Booth stated in the video. "If the Blockchain merely replicates a system based on perpetual interest and currency creation, it may exacerbate the inequality issues that decentralized technology is supposed to address."

This perspective has sparked widespread discussion in the crypto community. Supporters believe that Booth has articulated the core contradiction of Ripple's business model, while critics argue that it overlooks the actual contributions of XRP in enhancing the efficiency of cross-border payments.

XRP: A New Type of Global Settlement Infrastructure for the Digital Age

In stark contrast to Booth's cautious viewpoint, cryptocurrency analyst Pumpius expressed a completely different opinion on the X platform. He quoted Ripple CEO Brad Garlinghouse's remarks from years ago, emphasizing that XRP, like Bitcoin, has the potential to surpass traditional assets such as gold and diamonds.

"Unlike gold, which has historically served as a long-term store of value, or diamonds, which rely on scarcity and luxury appeal, XRP is positioned as a programmable currency with global settlement capabilities," Pumpius pointed out in his analysis. "XRP is not just a speculative asset; it is also a structural component of the emerging digital economy."

Global Vision for Programmable Currency

Pumpius elaborated further on the vision of XRP as the infrastructure of the digital age. He believes that by enabling fast and programmable transactions, XRP can become a pillar for trade, settlement, and identity anchoring in the digital era.

"We are witnessing the birth of a new currency order, in which traditional assets will face competition from digital assets aimed at increasing efficiency and integrating into the global financial framework," Pumpius stated, "XRP is at the forefront of this transformation."

This viewpoint has received support from some industry insiders, who believe that Ripple's RippleNet network and On-Demand Liquidity (ODL) service have already proven their value in practical applications, especially in reducing cross-border payment costs and improving efficiency.

Ripple's Banking Strategy: Coexistence and Competition with Traditional Finance

A deep analysis of Ripple's business strategy reveals that the company appears to adopt a balanced approach: collaborating with the existing financial system while also attempting to change it from within.

Ripple has established partnerships with over 300 financial institutions worldwide, including well-known entities such as Bank of America, Santander Bank, and Japan's SBI Holdings. These collaborations primarily focus on the following areas:

Cross-border payment optimization: Using XRP as a bridge currency to reduce the cost and time of cross-border transactions.

Liquidity management: Through the ODL service, helping financial institutions reduce the need for pre-funded capital.

Modernization of payment infrastructure: Integrating traditional payment systems with Blockchain technology

Compliance Solutions: Develop digital asset processing procedures that meet regulatory requirements.

This close collaboration with traditional financial institutions has led some critics to question whether Ripple truly represents financial innovation or is merely a digital extension of the existing system.

Prototype of Blockchain Banking System

From a technical perspective, Ripple is indeed building an infrastructure that can be regarded as a "Blockchain banking system":

XRP Ledger: As a core distributed ledger, it provides fast, low-cost transaction processing.

Liquidity Pool: Similar to the corresponding account relationship of traditional banks, but more efficient.

Payment channel: allows participants to conduct frequent, low-cost transactions.

Smart contract features: Extend through Hooks, increasing programmability and automation capabilities.

These elements together form a system capable of executing many traditional banking functions, but with higher efficiency and transparency. However, the key question is: is this an innovation of traditional banking, or merely a digital replica of it?

The Potential Role of XRP in the Global Financial System

Whether it is replication or innovation, the potential role of XRP in the global financial system is worthy of in-depth discussion.

· The Revolutionary Change of Cross-Border Payments

The most obvious application of XRP is in the cross-border payment sector. Traditional cross-border payment systems, such as SWIFT, typically take 3-5 business days to complete transactions and involve multiple intermediaries and high fees. In contrast, transactions using XRP can be completed in just a few seconds, with costs amounting to only a small fraction of traditional methods.

This increase in efficiency is not only beneficial for large financial institutions but also has significant implications for billions of individuals worldwide who rely on remittances. Especially in developing countries where remittance costs are high, XRP could bring about real change.

· The potential basis of Central Bank Digital Currency ( CBDC )

As central banks around the world actively develop CBDCs, Ripple has positioned itself as a technology provider for this transformation. The company has launched the CBDC Private Ledger, a solution based on XRP Ledger technology, specifically designed for central banks to issue digital currencies.

This move further blurs the lines between whether Ripple is a disruptor or a collaborator. On one hand, it helps traditional financial power centers maintain their relevance in the digital age; on the other hand, it also brings Blockchain technology into the core of monetary policy.

· A New Paradigm for Global Liquidity Networks

Perhaps the most revolutionary potential of XRP lies in creating a global liquidity network that can connect different financial systems, asset classes, and markets.

In this vision, XRP is not just a payment tool, but a "super bridge asset" that can provide instant, low-cost conversions between different value systems. This may include fiat currencies, digital currencies, security tokens, and even tokenized representations of non-financial assets.

Conclusion: Financial Evolution or Revolution?

Returning to the original question: Is Ripple building a blockchain banking system using XRP, or is it creating an entirely new financial paradigm?

The answer may lie somewhere in between. Ripple is indeed using blockchain technology to rebuild many traditional banking functions, but it is also introducing new possibilities and levels of efficiency that are difficult to achieve in traditional systems.

Jeff Booth's warning is worth noting: if blockchain technology is merely used to replicate existing financial inequalities, then it may not realize its transformative potential. At the same time, Pumpius's vision of XRP as the infrastructure of the digital age also points to a possible way forward.

For investors and industry observers, understanding the dual nature of Ripple and XRP is crucial. They are both partners of the existing financial system and potential disruptors; they are both a digital extension of traditional banking functions and pioneers of a new financial paradigm.

In this complex context, the future development of XRP will depend on the intersection of regulatory environment, market adoption, and technological innovation. Regardless of the final outcome, Ripple and XRP have already played a significant role in the evolution of the global financial system and will continue to influence the integration path of digital assets with traditional finance.