When it comes to international settlements, SWIFT has been the number one choice in the space for a long period of time. However, the platform is in serious need of an upgrade, and Ripple Inc. believes that they are in the best position to do that.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a platform that allows financial institutions all over the world to receive and send data of financial transactions in a standardized, reliable and secure environment. The network has been in operation for more than 45 years now, and it is now a worldwide standard when it comes to making cross-border payments.
Nevertheless, in its existence, it has also encountered some undesirable issues. It is as a result of this that the groundbreaking power of blockchain technology is referred to as the future of international settlements. More specifically, XRP (XRP) and Ripple are aimed at becoming the standard in this regard.
In regards to digital currencies, Ripple is perhaps most similar to SWIFT in such a way that they have a control hub for their XRP (XRP) tokens that is centralized. But they also have many benefits of being on the blockchain and decentralized.
In the past, SWIFT has been a political tool, especially when it comes to sanctions. The combination of having an organization that is under control, such as Ripple Inc. for the XRP (XRP) token, while still having the benefits of a decentralized blockchain means that Ripple Inc. has some edges over SWIFT. The few edges Ripple has over SWIFT makes it more attractive for the financial world today.
Speaking at a Fintech conference in Croatia, D’Arcy – the sales director of Ripple – said that: “I think SWIFT is a really interesting example. The reason is that SWIFT kind of crosses the lines sometimes and plays a bit of a political role. We don’t see the transactions of our customers. The transactions of our customers go over the internet. So Ripple could shut down as a business tomorrow and our customers could still carry out transactions using our software. That would not be the case of SWIFT.”
In addition to D’Arcy’s statement, XRP (XRP) is a decentralized digital currency that operates on a blockchain. As a result of this, it’s not easy to use it as a tool or manipulate it. At times, the US government exercise control over SWIFT, making the network to disbar some nations from the platform in order to execute their sanctions.
Ripple Stands a Better Chance than SWIFT
The benefits of Ripple over SWIFT are pretty obvious as SWIFT suffers from many legacy issues. Even the benefits of XRP (XRP) makes it more attractive as a successor for the outdated system. Ripple has been working towards appeasing and welcoming governments and regulators, and banks by extension, by abiding by financial rules. This control element makes XRP more appealing for countries and firms to adopt.
Nevertheless, in a continuously decentralizing world, the blockchain offerings of XRP means that there can’t be any manipulation or monopolization when it comes to international settlements.
XRP (XRP) Price Today – XRP / USD
At the time of writing, XRP (XRP) is changing hands at $0.3188 after a decrease of less than one percent over the past twenty-four hours. The digital currency currently boasts of a market cap of $12.90 billion with a trading volume of $404.81 million over the past twenty-four hours.