XRP Will Do For Banking What E-mail Did For Communication

David Schwartz, the Chief Technology Officer of Ripple, recently shared a compelling vision for the future of financial transactions.

In a widely discussed speech, he highlighted the impact that reducing payment costs to near zero could have on global financial systems. Crypto influencer Amelie amplified his message by stating that XRP will revolutionize banking in the same way email transformed communication.

WOW! 💥

DAVID SCHWARTZ: „IF THE COST OF PAYMENTS GO DOWN TO ZERO THE WORLD IS GOING TO CHANGE!“ 💸 #XRP WILL DO FOR BANKING WHAT E-MAIL DID FOR COMMUNICATION! 🏦 pic.twitter.com/7LfjkwTjvl

— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) February 23, 2025

The Analogy to the Internet and Shipping Containers

Schwartz compared the anticipated payment transformation to historical breakthroughs in shipping and information exchange. He referenced the advent of the shipping container, which revolutionized global trade by standardizing the transportation of goods, reducing costs, and increasing efficiency.

Similarly, the internet changed how information is created and delivered, making communication instantaneous and widely accessible. He posed the question: what is the equivalent innovation for the transfer of value?

He argued that just as the internet reduced the cost of transmitting information to nearly zero, a similar shift in payments could drastically alter economic structures. The ability to send and receive money instantly and at no cost would eliminate inefficiencies in traditional financial systems and enable new business models.

The Shrinking Size of Payments

One of Schwartz’s key predictions was that payment sizes would shrink as transaction costs decline. He pointed out that many people are paid biweekly or monthly, and bills are often settled on a similar schedule.

This structure exists not because of necessity but because payments are currently expensive and inefficient. If transactions became seamless and inexpensive, wages could be streamed continuously, and rent payments could be made in real time.

He acknowledged that these ideas might seem unconventional today, just as many early internet applications were unimaginable in the 1990s. Schwartz drew a parallel to the early days of email, explaining that no one could have predicted the diverse range of uses it would eventually serve.

Similarly, he referenced the evolution of digital media, recalling how, at one time, it seemed impossible that the internet would ever support on-demand video streaming. Yet, technological advancements eventually made it a reality.

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The Paradigm Shift in Financial Transactions

The implications of low-cost, real-time payments are profound. A social media user, Josh Martin, responded to Schwartz’s remarks by highlighting the inefficiencies of the current system.

He noted that credit card transactions come with a 2.75% fee, wire transfers cost at least $10 and take days to process, and withdrawing cash from an ATM often incurs additional charges. In contrast, a system with fast, near-zero-cost payments would remove these barriers and unlock new economic possibilities.

If payment costs were eliminated or significantly reduced, businesses would no longer need to absorb transaction fees, making goods and services more affordable.

Micropayments, which are currently impractical due to high fees, could become a standard part of digital commerce. This could support new revenue models for content creators, allowing them to receive direct payments without relying on advertising or subscription-based platforms.

The Role of XRP in the Future of Payments

Amelie’s statement that XRP will do for banking what email did for communication reflects a broader belief in the potential of blockchain-based financial solutions. XRP has been positioned as a tool for efficient cross-border transactions, offering speed and cost advantages over traditional banking systems.

If blockchain technology succeeds in reducing the cost of payments to near zero, it could create a financial landscape where money moves as effortlessly as information does today.

David Schwartz’s vision suggests the world is on the verge of a financial transformation. Just as previous technological revolutions reshaped industries and daily life, the ability to move money instantly and inexpensively could redefine economic interactions on a global scale. Whether XRP or another technology emerges as the “shipping container of value,” the trend toward faster, cheaper payments appears inevitable.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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