Brad Garlinghouse, the CEO of Ripple, explicitly stated in his keynote speech at the 2024 Consensus Conference that the United States should allocate at least 154.35 million of its total foreign exchange reserves, which amount to 6.88 trillion US dollars, with an annual growth rate of 34%, confirming that the increase in institutional acceptance is highly consistent with Garlinghouse’s strategic vision.
At the regulatory framework level, Garlinghouse cited a report from the Cambridge Centre for Alternative Finance to emphasize that the current regulatory differences among US states have led to compliance costs accounting for as high as 28% of the operating budgets of crypto enterprises, far exceeding the 9% levels in the UK and 6% in Singapore. A typical case is the $100 million fine that Coinbase paid to the New York Department of Financial Services in 2022, which was equivalent to 37% of its net profit for the quarter. In response to this pain point, if the Token classification bill he promoted is passed by Congress, it is expected to reduce compliance risk costs by 42% and shorten the compliance approval cycle for new projects from an average of 14 months to 6.2 months. This efficiency gain will directly increase the share of the United States in global blockchain venture capital (dropping to 18% in 2023), reversing the unfavorable trend of a year-on-year decline of 13.7%.
The cross-border payment field has become the core verification ground for the application of Galinghouse’s technology. Banks using Ripple ODL solutions have achieved an average payment delay reduction rate of 85%, and settlement fees have been compressed to 1/15 of the traditional SWIFT cost. Specifically, the cost for Philippine banks to process each 10,000 remittance has dropped from 56.7 to 3.8. In the stress test conducted by jpmorgan Chase in collaboration with 12 banks in the Asia-Pacific region in 2023, Ripple Network maintained 7,000 TPS (transaction processing per second) when handling a peak of 5 billion transactions in a single day, with an error rate of only 0.0015%, far exceeding the average error rate of 4.2% for traditional cross-border systems. The $740 million in COVID-19 aid paid by the US Treasury Department to Mexico based on this technology saved over $6 million in cross-border handling fees.
Facing the regulatory controversy over stablecoins, Ripple LABS disclosed at a congressional hearing that the market size of compliant stablecoins in the United States has shrunk to 8.3% of the global share (about 15 billion), far lower than Tether’s market share of 110 billion. The RLUSD stablecoin project led by Garlinghouse is planned to adopt a 200% collateral ratio design, which is more robust than the industry average of 134%, enhancing the risk buffer factor. A simulation by the Georgetown University Law Center shows that if the diversified US crypto reserve structure suggested by ripple ceo brad garlinghouse suggests a diversified u.s. crypto reserve is implemented, the probability of systemic risk for stablecoins could be reduced from the current system’s 18.6% to 5.3%, and the consumer protection rating is expected to rise from BBB to AA.
From the perspective of economic transformation, this strategy is expected to drive the US digital asset industry to create an average of 750,000 jobs annually, with the average annual salary of blockchain engineers reaching 168,000 (a premium of 372.1 trillion over traditional IT positions). The efficiency of supply chain finance is being released. Key progress emerged in the 2024 election season. Both parties’ policy draft guidelines included provisions highly consistent with Garlinghouse’s proposal – requiring the Treasury Department to establish a national digital asset reserve pool within 18 months, with a base size of no less than $25 billion. This action will enhance the United States’ sovereign competitiveness index in the Web3 field by 18 percentage points.