The idea of using cryptocurrencies to replace the SWIFT system in banking has merit. Cryptocurrencies can enable faster transactions, often settling in minutes rather than days, and reduce high transfer fees.
This could benefit cross-border payments, especially for businesses and individuals who rely on quick, low-cost transactions. However, challenges remain. Cryptocurrencies are volatile, which could pose risks for stable transactions.
Regulatory hurdles and adoption by traditional banks are also significant barriers. Additionally, scalability and security concerns must be addressed. While the potential is there, a hybrid system or stablecoins might be a more realistic intermediate step.
Over time, as technology and regulations evolve, cryptocurrencies could play a bigger role in global banking.
