With all the blockchains and infrastructures debuting in the market, it could mean only a matter of time before archaic existing platforms will be replaced. One of the latter ones to find its end could be SWIFT.
The Society for Wordwide Interbank Financial Telecommunication or SWIFT is around and close the same for over 40 years. Created in Brussels, Belgium 1973. It has done its part of allowing cross-border transactions to happen, but with no change of development. That is why a new, best be, blockchain solution is needed to be implemented.
One of the crypto-startups that aims the above-purpose is the firm Ripple with its blockchain tech advancements.
Ripple – SWIFT
To explain why SWIFT is best to be replaced and what issues it is presenting to get the job done swiftly, we will use a company owner as an example. The owner has a company that imports items from countries like China or Australia, which then sells them around the world. This is his business for 25 years and has dealt with transactions in foreign currencies. Among many of his recent frustrations with the cross-border transaction are the following cases:
One USD transfer from his HSBC account based in USA to HSBC in China took 4 business days. Keep in mind the process was run through the same bank with the same currency.
The individual initiated an AUD from AUS to Swiss and it took four days. That is not all as the commission fee of 5% was written down for the owner. This happened as the bank traded AUD to CHF and then them back to AUD when reaching the account in Switzerland.
With Ripple introducing the xRapid solution to transfer the XRP token to source liquidity and solve all the above. The process only takes to 3 seconds independent from the location or the difference in currency. On top of the cake, it takes almost no fees.
The Bill Gates Foundation is a project for the sole reason of making living standards for people in various countries better. In this road for the better, the Foundation teamed up with Ripple to use their tech and release a software named Mojaloop.
Based on information released by the world bank, there are over 2 billion people who are trapped in poverty, many of whom solely because they do not have access to a bank account or other basic financial services.
Mojaloop – is an open-source software which banks can adapt and find their own use of it very easily with low cost and effort. During its development, the project was funded by the Gates Foundation and created by fintech companies while including Ripple.
“Enabling the poor to make payments to anyone, anywhere, using a mobile wallet has implications beyond increased access to their domestic economies. It has the potential to bring millions into the fold of the global digital economy. We are honored to have been a part of this project.” – Stefan Thomas – Ripple’s Chief Technology Officer