Vet, a contributor to the XRP Ledger Foundation and co-founder of XRP Café, argues XRP inherits gold's trust properties, no single issuer, no central authority, while dropping the physical friction that makes gold hard to move or verify. He points to the XRP Ledger's built-in auto bridging feature, which uses XRP to connect currencies by available liquidity, as proof the token already functions the way the US dollar bridges other currencies in traditional finance.
Vet, a contributor to the XRP Ledger Foundation, an XRP Ledger dUNL validator, and co-founder of XRP Café, argues that XRP solves a problem gold has never solved: moving trusted value quickly across borders. In a recent interview, he said native cryptocurrencies like Bitcoin and XRP inherit gold's core properties, decentralization and the absence of a single issuer, while removing the physical barriers that make gold impractical to use.
Gold's trust, without gold's problems
Moving physical gold across borders is slow, and verifying its authenticity adds friction, Vet said. Once it sits in a vault, making a payment with it becomes difficult.
XRP, by contrast, settles transactions in seconds while remaining fully verifiable. According to Vet: "Everybody can verify it's real XRP", a combination he said has never existed before.
XRP's role as a liquidity bridge
The XRP Ledger runs a built-in auto bridging feature that connects currencies based on their available liquidity, using XRP as the connecting asset, Vet said. He said XRP fills that role because it is a neutral, jurisdiction-free asset that can be held and transacted without censorship, making it suited to bridging currencies that would not otherwise connect efficiently.
A comparison to the dollar's role in finance
Vet compares XRP's bridge function to how the US dollar works in traditional finance. Holding dollars gives someone a stable position from which to convert into pounds, euros, or yen, he said, and XRP is designed to serve a similar function in crypto markets, sitting between otherwise disconnected currencies and assets.
Source: Coinpedia Fintech News
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