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- Bitcoin offers a lower-cost alternative to traditional card payment systems.
- Merchants bear the hidden cost of credit card rewards and high transaction fees.
- XRPL’s rapid growth in tokenized assets signals increasing institutional blockchain adoption.
At the Bitcoin 2026 Conference, Twenty One Capital CEO Jack Mallers delivered a blunt critique of the global payments system, arguing that banks and card networks are placing an unfair burden on merchants. His remarks come as Bitcoin holds steady near $77,000, supported by growing real-world use cases and institutional interest across the crypto sector.
Mallers’ comments highlight a broader shift: while traditional finance faces scrutiny over fees and control, blockchain-based systems—from Bitcoin payments to tokenized assets on networks like XRP Ledger—are gaining traction.
Card Networks Under Fire
Mallers took direct aim at payment giants like Visa and Mastercard, arguing that their systems limit competition and access. According to him, merchants are forced to accept high transaction fees, often ranging between 3% and 5%, just to remain operational.
He also criticized the rewards ecosystem tied to cards such as American Express, saying it creates a misleading incentive structure. Consumers are drawn in by perks like cashback and travel points, but the actual cost is passed on to businesses through higher fees.
For small merchants, these costs can significantly impact margins. Mallers framed the issue as a structural imbalance, where payment networks maintain control while limiting alternatives like Bitcoin-based transactions.
Bitcoin vs Gold: Speed and Utility
Mallers went further, positioning Bitcoin as not just a store of value but a superior financial tool compared to gold. While gold has long been seen as a safe haven, it lacks the speed and flexibility required in a digital economy.
Bitcoin, by contrast, enables near-instant global transfers at lower costs. This makes it more practical for both settlement and payments. However, Mallers acknowledged a key behavioral challenge: users tend to spend fiat currencies while holding Bitcoin, expecting its value to increase over time.
This dynamic continues to slow Bitcoin’s adoption for everyday transactions, even as its infrastructure improves.
XRPL’s Rise in Tokenized Assets
Beyond Bitcoin, blockchain adoption is accelerating in other areas. The XRP Ledger has emerged as a growing hub for tokenized real-world assets, particularly U.S. Treasuries. Over the past year, issuance on XRPL has surged from roughly $50 million to over $400 million.
This eightfold increase signals rising institutional interest in blockchain-based financial products. As more firms integrate XRPL for asset issuance and settlement, the network is becoming a key player in the tokenization trend.
Still, expansion into lending introduces new risks. Industry participants are calling for stronger safeguards to manage potential defaults as tokenized assets are used in decentralized finance systems.
Also Read: Bitcoin to $1M or $60K? Schiff vs Saylor Battle Heats Up
Mallers’ critique and XRPL’s growth point to the same conclusion: the financial system is evolving. Traditional payment rails remain dominant, but their limitations are becoming more visible.
At the same time, blockchain networks are proving their ability to reduce costs, increase transparency, and expand access. Whether through Bitcoin payments or tokenized assets, the push toward decentralized finance is gaining momentum.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
