Popular XRP community handle suggests that the SWIFT payment system is dying slowly, emphasizing that XRP and XRPL are poised to replace it in global finance.
There have been several debates about the potential of XRP replacing SWIFT as the backbone of global finance.
Notably, several XRP community members believe that XRP has the capability to oust SWIFT, given its utility, such as near-instant and low-cost transaction prowess.
Nine Reasons Why XRP Will Replace SWIFT
As this debate gains momentum, popular XRP-focused X handle, “All Things XRP,” proclaimed that SWIFT is dying, with XRP poised to replace it. The community figure highlighted nine factors to support this argument.
Outdated System
First, the X handle suggested that the SWIFT payment system is outdated, expensive, and slow. Conversely, it characterized XRP and XRPL as cost-effective and fast, adding that the technology was built for the future.
Given XRP’s attributes, the channel asserted that it is only a matter of time before the cryptocurrency gains widespread adoption.
Messaging Prowess
Second, it compared the SWIFT messaging system to a dinosaur. According to the handle, traditional financial institutions, including banks, are forced to settle transactions manually because the SWIFT messaging system relies on a web of intermediaries.
However, it emphasized that XRP is decentralized. It serves as a bridge between two fiat currencies and enables near-instant settlement without support from intermediaries.
Speed
The handle suggests that unlike SWIFT, which can take up to five days for cross-border settlements, XRP settles transactions in 3 – 5 seconds.
Notably, it noted that there is no delay in sending money with XRP, emphasizing that the cryptocurrency moves value “at the speed of the internet.”
Transaction Cost
Fourth, the X handle highlighted the difference in transaction costs between SWIFT and XRP. While it claims SWIFT charges up to $50 for transactions, XRP’s cost is $0.0002.
This attribute gives XRP an edge over SWIFT, with “All Things XRP” predicting that businesses will soon switch to the cryptocurrency for payments.
Liquidity Benefits
Notably, it touted XRP’s liquidity as its “secret weapon,” suggesting that the crypto asset frees up capital locked in dormant accounts under the SWIFT system. As a result, the handle noted that this feature makes XRP-related transactions near-instant and efficient.
Adoption
Sixth, the post acknowledged SWIFT’s dominance in the financial sector, boasting an established network of over 11,000 financial institutions.
However, it suggested that the XRP ecosystem is rapidly growing, with Ripple’s RippleNet making significant moves to catch up. According to the post, RippleNet has more than 300 banking partners, indicating that financial institutions are rapidly adopting the technology.
Regulatory Perspective
Seventh, “All Things XRP” noted that SWIFT operates under a multi-layer bureaucracy. On the other hand, the handle indicated that XRP is poised for widespread adoption once the SEC lawsuit against Ripple is resolved.
Security Concerns
Eighth, the post claimed that SWIFT’s centralized model makes it vulnerable to attacks, referencing the $81 million Bangladesh Bank hack in 2016.
On the contrary, it asserted that XRP’s underlying technology is decentralized, secure, and battle-tested.
Upgrades
Furthermore, the channel dismisses SWIFT’s major upgrades, such as ISO 20022 and GPI, as a band-aid on a crumbling system. Conversely, it noted that XRP is not a tweak but marks a paradigm shift in how global payments should be processed.
In conclusion, the post declared XRP the winner over SWIFT. It stressed that XRP’s speed, scalability, and cost-efficiency are unstoppable forces that position it as the future standard for global financial transactions.
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