Even After Collaborating With R3 On A PoC Gateway, SWIFT Remains Unsure About Blockchain Technology

As reported by smartereum.com, Swift announced that it was making plans to launch a PoC of what it referred to as GPI Link. This project is going to allow R3’s blockchain network to connect with Swift’s GPI platform. This was considered a major step by the dominant cross-border payment processor into the emerging blockchain technology. Many experts saw it as a sign that the industry is maturing. As expected, some competitors of Swift have condemned the new system claiming that it isn’t as decentralised as it should be.

Switf Makes Plans To Expand Blockchain Integration After Partnership With R3

After announcing the recent PoC with R3, Swift made it clear that it would be expanding the projects by adding more decentralised and centralized trading platforms. However, it is obvious that R3 will be responsible for jumpstarting Swift’s move into the decentralised space. The result of the proof-of-concept will be released in September 2019 in London.

XRP (XRP) Price Today – XRP / USD

Name Price24H (%)
XRP (XRP)
$0.428742
-0.27%

Thankfully, R3 recently launch a decentralized payment Settler, Corda. The Corda Network has attracted more than 300 partners from across the globe who are using the open-source network to enhance their businesses. During a press release, the chief marketing officer at Swift suggested that the demand for decentralized payment settlement systems is increasing in the fiat world when compared to the cryptocurrency space. Luc Meurant said:

“Its true that DLT-powered trade is taking off at this time but there isn’t enough appetite for settlement in crypto-currencies. There is, however, a pressing need for safer, faster and more efficient settlements in fiat. Since the trade ecosystem has already adopted the Corda platform, it was a natural option for use to join the trend.”

Swift And Ripple In The Battle Of Centralization

When the CEO of Swift announced the upcoming integration with R3, he was right next to the CEO of Ripple, Brad Garlinghouse in a joint panel. As everyone in the cryptocurrency space already knows, Ripple is out to take a major share of Swift’s market capitalization. In fact, Ripple isn’t just interested in a piece of the cake, the company intends to take over the market eventually.

Now that Swift is also considering leveraging blockchain technology, Ripple will need to put more work into its goals to take over. More progress needs to be made from xCurrent and xRapid. While these technologies have been consider more efficient for cross-border settlements, there is still the issue of adoption. Compared to Swift, Ripple has a long way to go.

When it comes to the issue of centralization, Ripple’s Brad Garlinghouse has admitted that its solutions are not 100% centralized. The Swift GPI leverages existing cloud technology and traditional infrastructure. Even if the company is trying to explore blockchain technology, it is being careful not to fix anything that isn’t broken. Until now, Swift hasnt decided if it will be implementing the PoC with R3.

During his speech, Swift’s Leibbrandt sounded pessimistic about cryptocurrencies. This shows that the company still hasn’t embraced the emerging technology yet. First, he reminded the audience about the price struggles of Bitcoin after which he came for Ripple and the XRP token. In his words:

“I believe that a significant part of Ripple’s proposition is its XRP token and this hasn’t been adopted massively yet. Many banks are still hesitant to dive into cryptocurrencies fully at this time because of the price volatility.”

Do you think Swift will eventual embrace cryptocurrencies and the underlying blockchain technology?

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