🇺🇸 Eric Trump says The SWIFT system is broken and it’s going to be replaced by cryptocurrency🔥
The push to replace SWIFT with crypto is gaining serious momentum—Eric Trump’s UAE comments echo macro trends as leading banks like JP Morgan and Goldman Sachs ramp up their blockchain pilots. Ripple’s XRP is already powering hundreds of cross-border transactions.
- *SWIFT's Current State*: SWIFT is a global messaging network used for cross-border payments, connecting over 11,000 financial institutions. It's considered secure and reliable, but critics argue it's slow and costly.
- *Limitations of SWIFT*: Some of the challenges with SWIFT include:
- *Opaque Fees*: Inconsistent fee structures can make it difficult for businesses to track costs.
- *Slow Settlement Cycles*: Transactions can take up to five days to process, especially if multiple intermediary banks are involved.
- *Technological Complexity*: SWIFT requires significant resources to set up and maintain.
- *Blockchain and Cryptocurrency Integration*: SWIFT is exploring blockchain technology to improve its services. Recent trials have demonstrated its ability to transfer tokenized value across public and private blockchains, potentially paving the way for seamless integration into the wider financial system.
- *Alternatives to SWIFT*: New cross-border payment solutions are emerging, leveraging banking APIs, fintechs, and blockchain technology. These alternatives aim to provide faster, more transparent, and cost-effective transactions.
- *Cryptocurrency's Role*: While cryptocurrency might not replace SWIFT entirely, it could play a significant role in shaping the future of cross-border payments. Central banks are exploring central bank digital currencies (CBDCs), and tokenized assets are projected to reach $16 trillion by 2030.
In summary, the financial industry is indeed exploring alternatives to SWIFT, including blockchain and cryptocurrency. These emerging technologies could potentially transform the way cross-border payments are made.¹ ²
