Founder of CryptoLaw.US John Deaton has shared his take on a recent series of tweets posted by Ripple chief Brad Garlinghouse.
U.S. financial systems are in crisis, Garlinghouse says
The CEO of Ripple made a statement about Ripple's exposure to Silicon Valley Bank, which is now bankrupt and in talks to be sold. He admitted that Ripple was to some degree exposed to SVB, storing some of its cash balance since it was the company's banking partner.
However, per Garlinghouse, the company has not faced any damage to its daily operations in that regard. They have already spread their cash balance across a wider network of banks.
"Ripple remains in a strong financial position," he stated, adding that still a lot of what is happening to the aforementioned banking giant remains vague and he hopes more details will occur soon.
Aside from that, Garlinghouse touched on the topic of the crisis the U.S. banking system is facing currently in light of the recent bankruptcies of two banks, Silvergate and SVB. Not only were they top-notch banks, but they also worked with crypto companies and exchanges.
The CEO stated that current events happening to the banks highlight the degree of "how broken" the U.S. financial system is. In particular, he mentioned that money wires are not happening every day of the year with no breaks ("24/7/365") and "rumors lead to collapse and the frictions of moving money within a deeply fragmented system."
Elon Musk posts meme about banks and crypto
There can certainly be seen a hint here that crypto could be the solution to change the current mess for the better. The cryptocurrency XRP that Ripple works with (same as any other crypto) is able to provide cheap, fast and nonstop transactions, outpacing bank transfers here and offering protection to finance from what is happening to the banks now.
Still, crypto is not completely secured; it remains volatile and is vulnerable to hackers' activities. Speaking of this controversy, on Saturday, Elon Musk posted a meme, showing a person torn with doubt about where to store his money — in crypto or in banks.
As the reality check shows, neither system is entirely safe for investors and their money.