Ripple is making a lot of progress over Swift which currently monopolizes the remittance market. With various solutions, low transaction time, low cost, adding partners, and offering less volatility and more, Ripple is surely making its move.
It’s a matter of either seconds or hours
It is a no hidden fact that Ripple is looking to replace Swift and dominate the financial industry. No doubt, Ripple has already started making headway by introducing its various products viz. XRP, RippleNet, xRapid, xCurrent, and xVia along with a number of partnerships with banks and financial institutions all over the world.
Swift or Society for Worldwide Interbank Financial Telecommunication is being used all over the world. However, if we take a look at the data, Ripple shows much better results as shared by an XRP enthusiast on Twitter:
**SWIFT GPI (demo)**
Amount transferred: $485,000
Transfer cost: $70
Duration: 11hr 6min#XRPthestandard 2020$XRP #XRP #Ripple #XRPcommunity #XRPthebase #hodl #fintech #banking #payments @Ripple #cryptocurrency #crypto #money #finance #investing #InstantPayments #banks pic.twitter.com/7diyfnyOxX
— Dario Šuveljak (@stedas) September 8, 2018
As commented by KimXRPossible, “Who can wait 11 hr 6 min? It’s 2018, not 1918!”, people share similar sentiments in today’s world.
Not long ago, over 2 billion XRP has been sent in a matter of seconds and at a minuscule fee:
Transaction Type: Payment
Amount: 2,139,999,979 XRP
Fee: 12 drops (0.000012 XRP)
Sender Balance: 20.998428
Receiver Balance: 2,140,000,078.993
— XRPL Monitor (@XRPL_Monitor) August 28, 2018
Furthermore, Michael Arrington of crypto hedge fund Arrington XRP Capital recently stated:
“Our very first closing was over $50 million, and we moved that money in 3 seconds, and it cost like 20 or 30 cents to move that $50 or something million dollars.”
Moving towards dominating the remittance space
Recently, David Schwartz, CTO of Ripple said,
“We want to create a payment network like SWIFT. But one where the settlement, the actual movement of money, the actual plumbing underneath the surface, would be a decentralized, open network. The endgame is just money moving invisibly, as easily as information.”
Moreover, early this year, Ripple has shared the below Tweet:
“Swift’s published error rate is 6%. Imagine if 6 percent of your emails didn’t go through without additional human intervention.”
— Ripple (@Ripple) March 13, 2018
Ripple community is leaving no facet unchecked to showcase Ripple’s dominance over Swift as another enthusiast shares:
“In 1973, 239 banks from 15 countries got together to solve a common problem: how to communicate about cross-border payments. The banks formed a cooperative utility, the Society for Worldwide Interbank Financial Telecommunication, headquartered in Belgium. SWIFT went live with its messaging services in 1977, replacing the Telex technology that was then in widespread use, and rapidly became the reliable, trusted global partner for institutions all around the world.
TRS80 was released August 3rd, 1977. 4 years it took them to develop a system to last the next 41 years. When was XRP released?”
Well, there’s another theory in play as well, as shared on Twitter:
SWIFT has 2 options, die off like the US dollar reserve status or hook up with Ripple tech and survive.. SWIFT is already on board with ripple. Do your research, connect the dots… Theres no other way SWIFT survives whats coming.. The US dollar reserve status keeps SWIFT alive..
— Rachel Lee (@LeeR912) September 10, 2018
Whatever may be the plan, Ripple has thought of everything as confirmed from its huge amount of XRP supply:
If you want to move $5 trillion a day (SWIFT daily volumes), then you’d need the individual tokens having high value or you’d need ALL of the tokens for each transaction.
— Dr. T ⚡️ (@XRPTrump) March 14, 2018
Swift has over 10,000 banks in its bag and planning to introduce GPI by 2020. Ripple has already added 100 partnerships and GPI isn’t necessarily a Ripple-killer, though it can create hurdles for the company behind the world’s 3rd largest cryptocurrency.
Ripple definitely beats Swift with its speed by taking way too less time in processing the payments along with minimal transaction cost. However, the liquidity factor presents a challenge. But as emphasized by Ripple CEO Brad Garlinghouse numerous times, XRP’s few seconds of volatility just might be better than the days of volatility.
Swift might have the monopoly in the remittance market right now, but the way Ripple is moving forward, targeting different corridors and at a fast pace, the situation might reverse in the coming future.
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Passionate about Blockchain and has been researching and writing about the Blockchain technology for over a year now. Also holds expertise in digital marketing. follow me on twitter at @sagar2803 or reach out to him at sagar[at]coingape.com