Ripple has been trying to take a share of Swift’s market since its inception. This is no longer news. Swift is currently the dominant financial institution in the cross-border payment sector. It has established a global presence with so many member banks using its services to make transfers from one country to another. With more than one hundred years of experience under its belt, it would take a lot of effort for a startup like Ripple to claim even a small percentage of Swift’s market share.
Notwithstanding, Ripple is making its move. So far, the Silicon Valley tech company has created technology that can be used for cross-border payments just like Swift. The difference is that Ripple’s technologies are faster, cheaper and more efficient than Swift. The current solutions can have a disruptive effect on the traditional financial market. The only problem Ripple is facing is adoption. How do you convince a bank that has used Swift for more than 50 years that your new technology is better? This is where it gets tricky.
Brad Garlinghouse Decides To Build Trust By Leaving An Open Offer For The Former CEO Of Swift
One good way for Ripple to get the trust of Swift banks is to convince them that their services are so good that some people within the Swift community have decided to join them. Perhaps this is why Garlinghouse has left an open offer for the former CEO of Swift, Gottfried Leibbrandt who announced that he would be stepping down as chief executive in June.
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Gottfried has been the CEO of Swift for many decades. When he was breaking the news about stepping down, the interviewer asked him to share some of his experiences and legacy. In response, he said that GPI, Swifts technology for global transfers, has the potential to transform the banking industry on a global scale. Shortly after he gave his answer, Ripple’s Brad Garlinghouse offered him a seat on the table.
Many people in the cryptocurrency and traditional payment industry have been praying for a time when Gottfried and Garlinghouse will be in the same enclosed space and would talk about their rival technologies. This happened during the Paris FinTech Forum for the first time, or at least it happened virtually.
Both parties were moderated by Elizabeth Schulze from CNBC. Both parties talked about the future of global remittance. Addressing Swift’s CEO, she asked some questions like: why is Swift the future instead of Ripple? How do you feel about entering a partnership with Ripple? Why don’t you use Ripple’s tech for the revolution? If the cryptocurrency industry had a strong regulatory framework, would Swift be optimistic about Ripple? These and many other questions were for Gottfried.
Whether or not Gottfried will accept the offer to join Ripple in the revolution is unknown for now. However, if he does, this may be just what Ripple needs to convert some of Swift’s market share. Banks will be more likely to trust the Ripple technology if the CEO of Swift joins the team. Garlinghouse knew this and that was why he made the move in the first place.
Do you think Gottfried will join Ripple? If he does, will his presence be enough to get the attention of Swift banks? Share your comments below.