Cryptocurrencies and blockchain are set to disrupt much of the financial system and decentralize the SWIFT system.
Banks and remittance companies are in for a severe shakeup and are already beginning to feel the change. It is even possible that a cryptocurrency will eventually replace the Swift system.
In preparation, the legacy financial system is partnering up with crypto companies. This is as they look to migrate to a tokenized and automated financial system that cryptocurrencies will initiate. But, are the blockchain networks being created at this time be ideal platforms, for what will be the biggest of all industry disruptions?
Which cryptocurrencies replace the SWIFT system?
Ripple (XRP) is the third biggest cryptocurrency by market cap. It is regularly touted as being a cryptocurrency for banks and cross-border payment transfers.
RippleNet, Ripple’s worldwide payments network, is growing rapidly as more financial giants partner up. Already, RippleNet has a diverse network of over 300 financial institutions from all corners of the globe.
It’s acknowledged that they’ll use Ripple’s XRP for payments transfers. This will help them facilitate secure and almost instantaneous transactions, while paying minimal costs.
The benefits don’t end there. When financial institutions, such as banks switch to XRP, they’ll no longer have to store money in multiple foreign accounts. Instead, they can store their resources securely and locally. Again this will ensure more control for the institution and ultimately slice their overheads. Read More