Ripple Partner Mastercard’s CEO Hints That SWIFT May Not Exist In 5 Years• May 25, 2022 2:27 pm • Comments
Mastercard CEO Michael Miebach recently made a few interesting comments when answering a question during a panel that focused on discussing central bank digital currencies (CDBCs).
The question that was asked was whether he thought that the SWIFT network would still exist within 5 years time.
Miebach answered no which then seemed to catch the attention of many within the audience as some seemed surprised at that answer.
After all, SWIFT currently holds a monopoly when it comes to cross-border payments today, but its stronghold in the space is being disrupted quickly with the adoption of blockchain and digital assets.
Instead, the future seems to be very likely focused on digital blockchain networks that will take that role as well as the growth of CDBCs within financial systems.
Mastercard CEO @MiebachMichael drew gasps when he told an audience he did not believe SWIFT would exist in five years. @helenebraunn reportshttps://t.co/OMiIqzyrYd
— CoinDesk (@CoinDesk) May 24, 2022
Miebach spoke on a panel adjacent to the World Economic Forum’s annual (WEF) summit hosted by the Global Blockchain Business Council (GBBC).
The panel discussed the future of cross-border payments and the potential of CBDCs in the financial system.
“If you can get a payment with all the data attached that you need as a company […] the cost savings of that in addition to a payment cost that is lowered, and the overall productivity boost, we can expect if we do this well, that’s the real goal here,” Miebach said on the panel.
The conference officially kicked off Tuesday, with crypto being mentioned frequently in panels adjacent to the conference.
The subject is bolstered by the strong presence of crypto companies on promenade, the main street leading up to the Congress, where official WEF panels take place.
Other prominent panelists that were present at the forum did also believe in the decreasing relevancy of the SWIFT network due to new disruptions.
However, some thought that 5 years may be too soon and that the network would still likely exist within 5 years.
So far, Miebach was the only one who believed that SWIFT would be replaced within the near future which is still very promising given that he represents Mastercard which is a current leader within the space.
As a result, it seems that alternative networks such as RippleNet may eventually have a larger role to play when it comes to international payment systems in the future.
Rooz, the CEO of Digital Asset, think SWIFT will be replaced by other efficient cross-border payment systems. In fact, Mastercard being a Ripple partner may be looking at it as a capable system to replace the SWIFT system…..#xrp #ripple #crypto https://t.co/rQz5kQwCvZ
— The light shines in the darkness (@MatthewLINY) May 25, 2022
“Let us clarify the intent of the on-stage comment as it’s not as simple as a yes or no answer. Michael was simply reinforcing what SWIFT has previously said – their operations continue to evolve.
Its current form will not be the same in the future. They are adding more functionality and moving past just being a messaging system,” the spokesperson said.
But attendees at WEF are nonetheless paying attention. One guest asked a panel during a discussion on centralization about Miebach’s comments, while another attendee was overheard asking about it at the Congress Centre.
It seems that the industry is already in the middle of being disrupted and the question is who will eventually be the one that will replace SWIFT.
American financial giant MasterCard CEO Michael Miebach had people openly gasping when he answered “no” when asked if SWIFT, the current interbank messaging system that allows for cross-border payments, will exist in five years time.
— klymate$ (@Klymates) May 25, 2022
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