XRP vs SWIFT: Who will win the race for global payments? 🚀🆚🐢
XRP and Ripple technologies position themselves as a modern alternative to the outdated SWIFT system, which has dominated cross-border payments for decades.
SWIFT: Represents a secure messaging system used by banks to send payment instructions. The money itself moves through a network of correspondent banks, which can take anywhere from several hours to several days.
SWIFT Issues: Slow settlements, high fees, the need for pre-funding accounts (nostro/loro), and lack of real-time transparency.
XRP/Ripple Solution: XRP offers decentralized and instant settlement, using XRP as a bridge currency. This eliminates the need for nostro accounts and significantly reduces transaction time and cost.
Efficiency: SWIFT transmits instructions, while XRP moves the actual value instantly.
XRP and RippleNet provide a more efficient and cost-effective solution for global payments in the 21st century, aiming to replace or complement outdated systems.