Ripple Swift competition heats up day by day. Ripple’s goal is very clear! To be an intermediary platform in money transfers between parties in international financial transactions.
Can Ripple replace the Swift system?
As a result of international economic relations, billions of dollars of funds are transferred daily between banks, companies and financial institutions.
The most common method used to transfer funds between two parties is the international financial institution Swift established by Swift. is the network.
What is Swift?
Swift is a system that provides the standard for electronic funds transfer between almost all banks worldwide.
What does the Swift system do?
This secure network provides a Swift code (a kind of identification number) to fund transfers made by the parties, ensuring that financial transactions are recorded and the transfer takes place securely
What does SWIFT do? means? What does Swift stand for?
SWIFT, which stands for Society for Worldwide Interbank Financial Telecommunication, means World Interbank Financial Telecommunication Company.
SWIFT, which was founded in 1973 and stands for Society for Worldwide Interbank Financial Telecommunication, can identify almost all banks worldwide thanks to the bank identification code it calls BIC (Bank Identifier Codes).
According to Swift data, 32 million financial messages are sent daily. That’s 32 million daily fund transfers.
What does Ripple aim for?
Ripple started out as a competitor to SWIFT with its payment network called RippleNet, which performs instant and lower-cost international money transfers between banks and financial institutions.
See: What is Ripple? Where and how to buy XRP? How is the future of Ripple?
Ripple focuses on this sector where Swift system alone dominates. Ripple’s claim is to make this financial transaction faster, safer and cheaper. The xRapid network that Ripple has built based on blockchain technology so far fulfills this claim of Ripple perfectly.
- See: Experts’ comments: How much will XRP cost in the medium and long term?
- See: Ripple price predictions: Experts’ 2020-2025 XRP price prediction
Ripple or Swift technology?
Ripple’s marketing coordinator Ross D’Arcy says sending money through the Ripple network is as easy as sending an email.
“3 clicks, 30 seconds, you receive confirmation that the money has been sent. That’s why transferring money on the Ripple network is as easy as sending an e-mail or sending a voice message.”
Meanwhile, Swift is working on updating the software it uses.. Name of new payments system API. The API is not based on blockchain technology and its goal is to speed up the transfer of funds by minimizing errors.. However, the technology difference between Ripple Swift is developing in favor of Ripple.
Ripple’s CEO, Brad Garlinghouse, has also made statements in support of this claim before.. Said they replaced Swift and reached agreements with 200 banks and financial institutions. Among these banks are Ak Bank and HSBC Bank from Turkey.
Essentially, the biggest problem encountered in banks and the SWIFT system, which makes Ripple advantageous, is that banks impose some procedures before transactions.. As a result of these procedures, liquidity problems and some risks related to credit may arise.
Right at this point, Ripple stepped in and created a closed-circuit payment network that also relieved banks’ concerns about security.. And it has developed a payment and transfer system that solves the problems we mentioned.
Although Ripple Swift competition is getting hotter, it is actually not that easy for both customers and corporate users to get used to such new technologies.. Although it is generally accepted that it has shortcomings, users prefer to use a technology they trust.
- See: Why can Ripple be the Bitcoin of the future?
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