Why hasn't SWIFT been replaced and why hasn't Ripple (XRP) been adopted yet?
Software engineer Vincent van Koud, from XRP, shared his perspective on the structural challenges facing modern banking, emphasizing that the majority of global financial institutions still rely on technologies dating back to the 1970s and 1980s.
He pointed out that the continued dominance of SWIFT, the messaging system launched in 1977, is not just a matter of preference, but a reflection of the outdated infrastructure supporting the financial sector.
According to Vincent, most major banks operate on IBM z/OS mainframes and old COBOL systems that still form the core of their daily operations.
Van Koud noted that major vendors, including FIS, Fiserv, and Jack Henry, control over 70% of the core banking systems in the United States. While these platforms can process billions of dollars in transactions daily, they are characterized by their rigidity, high maintenance costs, and isolation.
Attempting to replace them is extremely risky, as comprehensive platform overhauls typically require between five and seven years and involve expenses in the hundreds of millions of dollars.
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