A detailed comparison between XRP and SWIFT has refocused on the changing nature of international payments. According to cryptocurrency analyst XRP Update, XRP offers key improvements that challenge SWIFT's dominance in the global financial system.
In the post shared on X, the expert outlined six key differences between the two platforms. These include payment speed, transaction costs, technology design, the role of intermediaries, and regulatory status. All these points clarify that XRP has certain advantages over other systems.
SWIFT is the system that helps banks securely forward messages as they process international payments. Although trusted by many, its use of correspondent banks causes delays and often requires the approval of multiple parties. Typically, a SWIFT transaction can take up to five days to complete.
On the other hand, XRP uses a decentralized blockchain system that allows transactions to occur instantly. The system processes transactions in a short time and completes them without requiring much bank approval. The XRP update indicates that the quick and easy transactions make XRP attractive to organizations.
The Infrastructure of XRP Meets Modern Financial Needs
Another distinction lies in the costs. SWIFT-based payments often include fees such as processing fees, exchange rate spreads, and administrative costs. These additional steps increase the financial burden on users, especially for cross-border transactions.
Using XRP does not require intermediaries, helping to reduce transaction fees. This is particularly beneficial for businesses and companies that frequently exchange large amounts of international payments. The post notes that having fewer intermediaries will help lower barriers and increase transparency.
The use of technology is essential in the comparison process. With a decentralized ledger, XRP ensures that it remains robust and does not allow anything to be compromised even once. In contrast to SWIFT, XRP provides anyone with the ability to participate and use its services without having to rely on legacy services.
Even in the absence of specific rules regarding XRP in the United States, XRP Update states that the recent situation does not deter large organizations. Although SWIFT is well established, their system is not very advanced.
The comparison shared by XRP Update outlines why XRP may be better suited for the future of cross-border payments. Its advantages in speed, cost, and efficiency make it a strong alternative to traditional systems like SWIFT.
