- Brad Garlinghouse, CEO of Ripple, highlighted that XRP Ledger could revolutionize global payments and banking by providing a more cost-effective, efficient and faster alternative to SWIFT.
- Garlinghouse said that Ripple’s technology, which is decentralized, could reduce SWIFT’s 6% error rates in cross-border payment.
During a recently conducted interview, Ripple’s CEO Brad Garlinghouse discussed the potential for the XRP Ledger revolutionizing the current global banking system dominated by America SWIFT. He is convinced that XRP will be a viable alternative to existing systems.
Garlinghouse explained that Ripple’s XRPL provides messaging and liquidity solutions. This robust new architecture replaces SWIFT’s old architecture, and can provide liquidity from other global financial institutions such as Citi.
Ripple CEO, John Ripple stated that XRPL’s innovation is in combining messaging with liquidity into a single product. SWIFT, on the other hand is limited, as it’s a messaging protocol. financial Worldwide institutions. Garlinghouse noted that SWIFT’s architecture has remained largely unchanged for the past five decades.
#XRP Swift will be utterly dominated! 🌐
All Swift transactions are soon to be processed through the XRPL, I think! 💵💱💴
Credit: @CKJCryptonews pic.twitter.com/BcdJeW401I
— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) August 16, 2024
SWIFT became slow and error-prone in this digitally fast-paced environment. Ripple’s technology is designed to address these issues by using innovative technologies to make cross-border payment faster, cheaper, and more efficient.
Ripple’s technology leverages decentralized technologies to reduce the costs and time of cross-border payment from days to seconds. Ripple XRPL is a SWIFT-alternative that can be a good fit for the BRICS nations. reported CNF.
Ripple’s XRPL vs SWIFT
Garlinghouse emphasized the long processing times and high error rates of SWIFT. SWIFT currently has an error percentage of 6% due to incorrect information, such as account numbers. It can cause delays in transactions and a high probability that they will be reversed.
SWIFT, as a platform for one-way messages, is not able to provide two-way communication. This means that any errors and inaccuracies will require manual correction, adding delays. Garlinghouse stated that Ripple’s decentralized tech can reduce the error rate by a significant amount while providing real-time feedback when entering transaction details. Ripple’s CEO claims that real-time information can reduce errors down to 0.1%. reported CNF.
“We see instead of a 6% error rate as reported for SWIFT, you see, you know, 10 bips of error,” Garlinghouse note.
In order to combat SWIFT’s inefficiencies with messaging, the solution introduced by ripple introduces a mechanism for liquidity that is used by several traditional financial institutions. financial Citi is one of the many institutions that rely on banks for liquidity. Ripple enables transactions to be liquidated via XRP. financial This allows institutions to release capital normally locked in pre-funded account across multiple markets. The innovative approach to banking has the ability to significantly disrupt the system. According to the CNF, a market analyst thinks that XRP can reach $10 if it contributes 10% to SWIFT transactions. report.
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Source: www.crypto-news-flash.com