There is no doubt that Ripple has garnered a pretty decent reputation as a company in the cryptocurrency industry. It has lowered the total cost of settlement by allowing banks to remit directly, instantly, and with complete certainty of a settlement. The latest Ripple news is that the company is all set to take over Swift very soon.
Ripple’s currency, XRP, has seen tremendous growth in its value recently. One of the reasons of its increased value might be the speculation regarding the company’s collaboration with SWIFT – Society for Worldwide Interbank Financial Telecommunication – which is the world’s leading provider of secure financial messaging services at the moment.
Ripple News: Company Taking Over SWIFT?
When the speculation was corroborated, it turned out it was a mere rumour and there was no truth in it. In fact, SWIFT went on to categorically dismiss any such talks taking place between the two companies.
On the other hand, Ripple’s CEO, Brad Garlinghouse also went on to deny the rumours as well. But he didn’t just stop there. He further went on to criticize SWIFT’s current method by saying that the technologies that banks have been using today were developed decades ago by SWIFT and they have not been evolved with time or even kept up with the market. He further stated that long ago, SWIFT also declared that they didn’t see blockchain technology as a solution to the correspondent banking.
He mentioned that Ripple has over 100 of their customers that completely disagree with SWIFT’s statement. It is true that SWIFT is currently owned by the banks and Ripple is also trying to help the banks.
Ripple believes that blockchain technology will serve to be a massive step forward in terms of how correspondent banking has worked historically.
Ripple’s CEO gave a recent interview to Bloomberg in which he stated that his company is able to gain customers at a much rapid rate relative to the market because financial institutions including banks are in search for rapid, more modern technology than what is being provided by SWIFT at the moment.
The CEO also believes that his company has a significant advantage that will become more evident with time especially when cryptos and blockchain are gaining momentum in the financial market.
Ripple is SWIFT’s Biggest Competitor
However, for Ripple, SWIFT still remains a strong competitor.
It is true that SWIFT enjoys the lion’s share of cross-border payments and remittances, offering secure and reliable platforms for both banks as well as customers to remit money internationally. Undoubtedly, SWIFT is the primary source of remitting large and small amounts across borders, or at least in the countries where it can legally operate in.
Having said that, we must not forget the development and growth cryptocurrencies have shown recently. Due to the cryptocurrencies, SWIFT also faces some limitations as well as new competitors.
Unlike SWIFT, Ripple can reduce transfer times as well as fees using the blockchain technology. In fact, the company has already collaborated with the largest money transfer companies in the world including Western Union and Moneygram.
Ripple’s CEO seems quite optimistic about his company’s future as far as remitting cross-border payments are concerned. He strongly believes that this technology will prevail in the long run and will make SWIFT’s method obsolete.
He believes his company will be slowly taking over SWIFT on a day-by-day basis. Currently, Ripple has been able to join hands with over 100 banks, some of the biggest SWIFT enabled banks across the world that are now using Ripple’s blockchain technology.