Report: Ripple to "revolutionize" remittance and overtake "ancient" SWIFT

27 Jan, 2019 | Updated: 30 Jan, 2019
by Will Heasman
Opinion
Report: Ripple to revolutionize remittance and overtake ancient SWIFT

According to an article from Edge Markets, the Singapore-based business media outlet, Ripple is in prime position to take the #1 spot from global remittance solution SWIFT.

Specifically citing Ripples XRP based solution, better known as xRapid, the article alleges that the firm will gain supremacy over swift via its ability to provide instant liquidity:

“From the perspective of big financial institutions, better liquidity is a key advantage. Payments, especially to parties in emerging markets, often require pre-funded local currency accounts around the world, resulting in high liquidity costs. With xRapid, payment providers and financial institutions are able to dramatically lower the capital requirements for liquidity, as it uses the XRP token to provide on-demand liquidity.”

Furthermore and somewhat unsurprisingly, a key focus of the article was the time it takes to send and receive payments:

"A single transaction on xRapid takes only a few seconds to complete, regardless of the origin or designation of the fund. Transaction fees are significantly lower as well”  

Cory Johnson, Ripple's chief market strategist compared xRapid to traditional methods of remittance such as global players SWIFT, and noting a huge discrepancy between the two remittance providers:

“Using Ripple software, you are exposed to XRP for just mere seconds and, in that few seconds, the volatility is very small, compared with traditional remittance, where the money [would be held] for days, thus exposing it to the possibility of volatility for a longer period.'” Said Johnson.

The report elaborates on this point, adding that “many have complained” about SWIFT and its “relatively ancient” system:

It’s [SWIFT’s] global payment innovation is slow expensive and opaque and requires manual intervention by banks. In addition, only about half of the payments sent via SWIFT gpi are credited to the beneficiary in less than 30 minutes.”

Read more: Ripple Q4 report in, company sold $535.56 million worth of XRP in 2018Ripple's partner SBI Holdings joins Russian banks to invest in SBS Bank;

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Read more about: Ripple (XRP)

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