XRP can replace the Swift interbank system, which is over 50 years old-but its persistence is great
- Ripple technology offers worldwide transactions quickly and too far less than Swift and could replace it.
- XRP as an intermediate currency is interoperable, transparent, works almost in real time and would solve many problems of the Swift system.
A recently published contribution by the crypto expert “X Finance Bull” tightened the debate and argued that XRP and Ripple’s Interledger Protocol ILP could easily replace this Swift system for half a century. The article underlines the main differences, such as transaction pace, costs, transparency and interoperability, and is more of an XRP and ILP as a revolutionary leap than as a gradual improvement.
Since banks and financial institutions already use blockchain technology in other areas, the discussion about the future of Swift has gained dynamics.
Faster, cheaper, more transparent
The Contributionvon X Finance Bull Shows how XRP and ILP Swift exceed in terms of efficiency. Swift transactions usually last one to five days, while XRP-based payments are handled within minutes; And while Swift transactions can cost between $ 10 and $ 50, XRP transactions only cost fractions.
An example that illustrates this advantage comes from Michael Arrington, the founder of Arrington Capital, who revealed that his company transferred $ 50 million with XRP. The transaction lasted 3 seconds and cost 30 cents – $ 0.3. This drastic reduction in time and costs makes XRP a real alternative to Swift.
In addition to process pace and costs, transparency and interoperability are also important advantages. Unlike the closed system from Swift, XRP’s technology enables the pursuit of transactions in real time. ILP further improves this by enabling direct transactions between different financial systems, including banks, fintech companies and crypto networks. Institutions such as the Bank of England have examined this and thus signal a growing interest in blockchain-supported payments.
Make old systems efficient
In the article, ILP’s decentralization aspect, which eliminates the dependence on intermediate dealers. This increases security, efficiency and accessibility, the latter applies to beosangers for private individuals.
As CNF reported, Ripple is working on the creation of a “Payment Interstate Highway”, which, in contrast to the traditional Swift infrastructure, enables smooth transfers between banks, blockchains and digital wallets.
“X Finance Bull” argues that the turning away from Swift would have profound effects on global finance. Without the dependence on Swift, companies and financial institutions could bypass high fees and sluggish transaction processes, which would lead to an improvement in global trade and transfers.
The CEO of Ripple, Brad Garlinghouse, has already explained that Swift is outdated and has to be modernized. The company’s innovations with XRP and ILP are a convincing argument for changes and offer an efficient alternative to the old financial systems. With the increasing acceptance of large financial institutions, the change to blockchain-supported payments in the coming years could redefine global transactions.
When writing this article, XRP was traded at $ 2.12 after a decline of 2.60% in the last 24 hours.
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