Are Ripple and SWIFT 'doing different things'?

09 Oct, 2018
by Joeri Cant
News
Are Ripple and SWIFT 'doing different things'?

Marjan Delatinne, a current Ripple, and ex-SWIFT employee, certainly seems to think so. In an interview posted @DiepSanh she said that she personally thinks that Ripple and Swift are indeed doing different things.

'It is true that at the end you are talking about tranferring value' she says, 'but Swift is a communication mechanism'.

Ripple however, according to Delatinne, goes beyond that, settling transaction for the banks in full in a matter of minutes.

SWIFT was founded back in 1973, and is the system that banks today use all over the world to settle transactions across borders. However, Swift is not capable of sending actual money. They rather send the promise of money. Unlike Ripple, it is considered to be slow, expensive and open to error.

But according to Delatinne, the markets will be the ones who end up choosing the better option, pointing out that 'there is enough space for both systems to co-exist together as they provide the same customers with services that are fundamentally different', adding that in the end, the banks will decide on which option improves the end user’s experience the most.

At this current time, Ripple demonstrated to be a cheaper, quicker, and more efficient technology when it comes to cross-border payments, and while Ripple has everything to gain, Swift might be left behind, with everything to loose.

What do you think? Would banks really consider the 'end user’s experience' in this decision? Or will they, as banks tend to do, consider costs and possible profits?

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Read more about: Ripple (XRP)

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