Cryptocurrency expert CharuSan explained why Ripple’s XRP is a better choice cross-border transactions than SWIFT. He also predicted that SWIFT will likely integrate XRP at some point to avoid redundant work.
Why Ripple’s XRP has a competitive advantage over SWIFT
In Post XCharuSan said SWIFT is cumbersome and snail-paced and will completely lose its competitive advantage XRP’s ODL technologywhich frees up trillions of dollars for banks in a matter of seconds. He further noted that XRP solves the problems of these banks by enabling faster and cheaper payments, prompting them to reconsider using SWIFT.
As such, he opined that XRP will take over the market quickly rather than gradually. The expert also mentioned that the main software used by banks already exists integrated with Ripplewhich means the technical track is ready. CharuSan added that there is no need to meet 13,000 banks individually as one update will integrate all banks with the system.
CharuSan noted that the real issue for SWIFT is whether it will add XRP to its system as a liquidity layer to keep pace with the state-of-the-art world, or whether it will remain a straightforward messaging service, which could cause it to lose financial authority and ultimately go packing. As such, he believes it SWIFT adoption the apply of XRP technology at some point is a strategic necessity for the company’s survival.
However, it is worth noting that SWIFT is developing its distributed ledger on Ethereum Layer-2 Linea in partnership with ConsenSys and up to 30 banks. This is part of the company’s move to extend its pure messaging layer to the execution layer, enabling cross-border payments 24/7.
Why Linea Movers Can’t Compare to Using XRP
CharuSan also opined that SWIFT cannot compete with XRP even if it decides to develop a distributed ledger on Linea. He explained that Linea is a layer 2 infrastructure and SWIFT experiments with these networks it is constrained to attempting to transmit messages and transfer resources. The expert added that Linea is not a liquidity tool.
In this regard, CharuSan noted that although Linea aggregates transactions on its own, it still sends this data to Ethereum network for verification, incurring a cost in the process. He pointed out that such a process is not viable for cross-border payments, and therefore SWIFT cannot compete with or be compared to XRP. The expert reiterated that unless SWIFT reaches an agreement with Ripple and integrates XRP as a liquidity layer on its platform, it will be “doomed” to disappear.
At the time of writing, XRP is trading around $1.41, down more than 4% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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