Is Ripple really able to replace the SWIFT system?
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Answer Is Ripple really able to replace the SWIFT system?
Ripple Inc. and owner of XRP is one of the few cryptocurrencies that have remained in good standing after the recent crypto market crashes.
Although it also recorded significant losses today. However, XRP has become the second largest coin by market capitalization, overtaking Ethereum once again.
Ripple’s blockchain network is expanding, with several new partnerships reached this week. In fact, the company is so confident that CEO Brad Garlinghouse has said that sooner or later Ripple will overtake SWIFT, which currently dominates the global transaction banking market.
Garlinghouse was recently present at the Singapore tech event, where he was interviewed by Bloomberg. He told reporters that the SWIFT system is outdated and will not be able to stand up to innovative technologies such as the blockchain that Ripple depends on.Read:Bitcoin price fails to surpass $10,500 levels and most altcoins decline
“The technologies that banks use today and that (SWIFT) developed decades ago haven’t really developed or kept pace with the market. Swift has long declared that they did not see blockchain as a solution for banking correspondence. We have had more than 100 of their clients who have indicated that they do not agree with this.” As indicated by the CEO of Ripple.
Garlinghouse also denied the news that Ripple might work with the Swift Foundation to develop and launch a joint product between them, saying: “What we do and seek to implement on a daily basis is, in fact, acquiring Swift’s market share. “.
In fact, SWIFT was the first to deny the rumours. It is true that the payments network operator was upset by the criticism and decided to publish the Global Payments Innovation Update, which should speed up transaction time and processes. However, the new GPI implementation has nothing to do with the Ripple integration, as suggested by some voices earlier.
SWIFT is the acronym for the Association for Worldwide Interbank Telecommunications, an entity established over 40 years ago. It enables businesses and individuals around the world to carry out international money transfers across borders, with the network reaching nearly 200 countries and including 11,000 financial institutions, including all major banks. The payment provider has dominated the market for decades, and continues to do so today.Read:After the June CPI data was published…More than $200 million of Bitcoin liquidated
However, Garlinghouse is confident it is time for a change. His company, Ripple, is the opposite of SWIFT, which was founded in 2012 and is open to innovation and development. The RippleNet network currently includes more than 100 banks and payment companies around the world, including SBI Remit, Standard Chartered, MoneyGram BBVA and Mitsubishi UFJ Financial Group. The San Francisco-based fintech company is promoting distributed ledger technology (DLT) and would like to use XRP for its XRapid digital currency payments.
Can Ripple Bypass SWIFT?
Although the shift from SWIFT to a blockchain-based network cannot happen overnight, Ripple is making tangible steps towards its expansion. Of course, today we are not talking about a real challenge, but things could change dramatically in just a few years, as the Ripple network is growing rapidly.
For example, in this month alone Ripple has reached many partnerships with major players in the financial world. On November 9, Japan-based MUFG Bank, which is already a member of the RippleNetwork, signed a memorandum of understanding with Banco Bradesco, the largest private bank in Brazil, to develop a cross-border payments channel based on the new Ripple technology.Read:Fake Satoshi Nakamoto reveals himself and announces his next project
On Wednesday, Malaysia’s CIMB Group, the fifth largest bank in ASEAN (the Association of South Asian Nations), announced a collaboration with Ripple to create an instant cross-border payment system for CIMB Markets. According to the agreement, CIMB will become a member of the RippleNet network.
“We see banks and financial institutions from all over the world leaning towards blockchain solutions because it allows for a more transparent, faster, and less expensive payment experience,” Garlinghouse said at the time.
On Thursday, Ripple boasted that it had been selected as a partner by Thailand’s Siam Commercial Bank (SCB).
Now that Ripple has launched its xRapid solution, more banks are keen to switch to the blockchain. So… the CEO of Ripple may have been right to bypass SWIFT at some point but not today.
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