RippleNet Reveals Ambitions Greater Than Being SWIFT Replacement

May 30, 2022 9:33 pm

The General Manager of RippleNet, Asheesh Birla, just made a number of interesting comments regarding the future of Ripple and his thoughts regarding the current lawsuit with the SEC.

First, he confirmed that Ripple is already doing around $15 billion in its payments business alone which indicates how well the firm is doing due to the record growth.

As a result, it already proves that Ripple is already operating in a way that is resilient to whatever the regulatory outcome is within the United States.

One of the more interesting comments that came up was when he was asked whether he thought Ripple would replace SWIFT one day.

In response to that, it was mentioned that Ripple intends to do more than what SWIFT currently does by doing both the messaging component in a financial transaction as well as the actual moving of the funds.

So far, SWIFT only does the messaging component.

CryptoGlobe.com reports:

“I think we have bigger ambitions than replacing SWIFT. So remember, to move money internationally, there’s two components. There’s a messaging component, but then you actually have to move the funds. That’s not what SWIFT does. SWIFT only does the messaging…

“What was really really innovative about crypto and RippleNet is that we do both. We’ve modernised both. So, using SWIFT for messaging is like what’s happening using a fax machine today.

So, we modernise that using APIs. It’s real-time. But then we also do the settlement. There’s not another solution out there that does both instantly like Ripple. And so, our solution is now a lot bigger than what SWIFT does.

“I think SWIFT is going be around for five years. It takes a long time to change like the entire banking system. I mean upgrading the mainframe at BNY Melon is probably a couple of hundred million dollars to do, to modernise that so that they can move off of SWIFT. So I think SWIFT is here to stay.

Essentially, the General Manager expects there to be a gradual shift from the existing SWIFT network as the more innovative companies will typically be the first ones to transition to using blockchain technologies.

When they do make that transition, RippleNet will be there as one of the most obvious solutions to their problems as there really isn’t any other better alternative in the crypto world.

As a result, the potential of RippleNet is more than just a replacement, but actually succeeds in doing things that the traditional financial system struggled with.

This then creates a major incentive for all financial institutions to slowly migrate off SWIFT or at least utilize both systems at the same time.

U.today reports:

Alternatives like Ripple are increasingly being touted alongside incumbent market players like SWIFT. Ripple, on the other hand, claims to have bigger ambitions than SWIFT’s replacement.

Ripple operates RippleNet, a platform that allows anybody to send and exchange cryptocurrencies as well as conduct cross-border transactions. This became a direct competitor to the SWIFT banking system (Society for Worldwide Interbank Financial Telecommunications).

As previously reported by U.Today, the Arab Monetary Fund’s advisory council suggested RippleNet as a direct alternative to SWIFT.

The Clearing House, a well-known Ripple partner, teamed up with Wells Fargo (an American multinational financial services business) in March to create a new instantaneous payment system to challenge SWIFT’s supremacy.

Ripple also joined the Digital European Association (DEA), an internationally recognized body, to work on CBDCs.

With this new perspective, it looks like the financial world will no longer be dominated by just one network, but there will be multiple huge players in the near future.

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