Ripple vs SWIFT: Can Ripple Win The War For Cross-Border Payment Dominance Against SWIFT?

Ripple News Today – The coming of blockchain technology has undeniably modified the advancement of global digital payment development. Cryptocurrenc like XRP and Facebook’s Libra are confronting the dominance of banks and other financial institutions. Institutions like SWIFT, Visa, and Mastercard have been compelled to quest after notable transformations to the legacy system. Blockchain systems operate on the level of converting the legacy system with a secure and streamlined payment model. The payment channels appear strained to take on the unfolding development of “adapt or die out.”

Ripple News Today – Ripple Latest Update – Ripple in the Front Line of Dominance Against SWIFT

Common with every technological competition, competitors have to work factors that’ll serve as an advantage for them in the race. The modern-day cross-border remittance industry is looking at improving transaction speed, security, and cost-efficiency of their platforms.

The platform has to be swift, affordable and durable for its users. These are the three challenges faced by the companies seeking dominance in the developing payment sector. Recently, the Society for Worldwide Interbank Financial Telecommunications (SWIFT) attempted a new instant cross-border payment system that provides profound optimization swiftly.

XRP (XRP) Price Today – XRP / USD

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XRP(XRP)
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An Optimization is a unit of SWIFT’s scheme of modifying swift resolution ability through its Global Payments Innovation (GPI) as a way of competing strongly against competition like Ripple. The new system is said to minify the cost of approval by financial institutions that use the model.

Ordinarily, the height for most projects is to achieve two out of the three parameters previously listed. For cross-border remittance, technological innovation possibly handles the speed and cost aspect of the platform.

In the latest Ripple news, Blockchain Company Ripple has promised its users swift transaction resolution in as little as four seconds which will be price efficient to transfer money globally.

In a recent interview with Kenny Li, the CEO of Worthyt and a blockchain technology commentator, he commented on the latest cryptocurrency news update, the gross significance of swiftness in a transaction in the developing cross-border remittance platform. According to Li:

“I do think that people care about speed. Speed and convenience are more important, even in the blockchain space. That’s why people are willing to trade the security of decentralization and ownership with the convenience of speed on centralized exchanges. So, I do think that the fast ones will win. But I don’t think you need to be the fastest. Fast enough is enough. Visa does around 1-2k transactions per second (tps). Some blockchains that can already do that with delegated PoS — Proof of Stake, (EOS being the prime example, and I’m sure Libra will have no trouble with it as it also seems to use delegated PoS).”

Although Li still maintains that transaction swiftness is not the only key for a system like global remittance. Commenting further on the issue, Li said:

“Once you hit a threshold then the rest is just bragging rights. I think that threshold may be 3-5k tps (rough napkin estimate based on an assumption of Visa’s market share, penetration in firewalled countries like China, global penetration, and the fact that one system is unlikely to be a monopoly).”

Blockchain company Ripple says XRP can manage 1,500 TPS and a possibility of a surge. 50,000 TPS could be evaluated as pushing its limit on a global scale.

Do you think Ripple can dominate the cross-boder financial sectors?

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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