Bitcoin Forum

With Ripple's growing partnerships among banks and businesses worldwide, it seems that traditional payment systems will become replaced with DLT technology (aka as Blockchain). Because of the many benefits such technology provides, it looks likely that it will replace the old SWIFT system in the future. Unless such system does the switch to Distributed Ledger Technology, it may become outperformed by Ripple or Stellar in the future.

On the other hand, IBM has been working on a new payment network called "World Wire" powered by the Stellar protocol. Which means that existing players could be left in the dust if they don't grasp the benefits of the Blockchain.

Nonetheless, what are your thoughts about this? ???

all these systems will surely upgrade their underlying technology to improve and be able to continue competing with bitcoin as the serious and only decentralized currency which is threatening their business. so in that process they are testing a lot of different altcoin's technologies to adapt into their own system. they will never use any of the altcoins themselves though.

so no you can't say blockchain will replace SWIFT,... the only thing that will happen is that they will lose the market to bitcoin and then upgrade their systems to try and take some of it back.

The sign of this already occuring are everywhere. The banking institution aren't against blockchain technology as they know using the technology will give them more credibility and gain trust of their clients as the technology is transparent, decentralized and less time consuming. The issue the bank has is with bitcoin and alternative Currencys, they know those cryptocurrency have the power to kick them out of business that's they don't have much of a interest toward accepting them but in accepting blockchain technology I'm sure they would have no choice if they want to keep up or they'll be left behind.

With the evolution of blockchain technology, it might end up changing lots of things in our financial institutions which banks are not exceptional, they might be playing hard to get now but it is only in a matter of few years before they realized that they are being left behind in the game if they don’t join.

Swift might not loo relevant too, I am sure that the team in charge of swift will also be preparing right now too to adopt the use of blockchain technology in their transactions, so most of this existing player will end up joining too if they don’t want to lose out or lose their relevance.

Yes, if they are not smart enough and learn from the lessons of the past, then we are going to see that the blockchain is going to send banks to extinct, this is why so many banks are fighting so hard to upgrade their system to that of the blockchain because they know what might happen to them in the future if they refuse to do this.

It might take a lot of years because the bank have already eaten up all the system in the world but I am sure it's going to happen if they don't upgrade their system to suit the blockchain.

I think in some years yes, the blockchain will replace the SWIFT system if banks wants. In my opinion is more easy to use the blockchain technology then what is used now in banks and more secure than the system used.

Let's be frank, how efficient is the current blockchain systems or payment systems in terms of TPS (transaction per speed) and fast confirmation of transactions? I think for blockchain to replace centralized payment systems, there is need to enhance its services through this way not only replacing payment systems but achieveing mass adoption.

The bank sector is joining crypto space as they are already investing in many crypto related projects. They will use the advantages of blockchain technology sooner as we could  expected.

Well, time will tell us if we were wrong once financial institutions start adopting Blockchain technology at a large scale. The old SWIFT system being large in user base, could become bigger than ever if it grasps the benefits of Blockchain tech. So far, Ripple and IBM have been working on payment networks with the purpose of bringing cheap and efficient transactions for the world. They have higher chances of overcoming SWIFT in the future if the latter doesn't adapt to the latest technologies.

Still, it's becoming more evident that Blockchain tech will transform nearly every aspect of our lives in the future. It's not only about finance, but also healthcare, transportation, and more. All of this means that Blockchain will soon replace old traditional systems, bringing everything towards the 21st century. Once that is complete, then physical cash will cease to exist, and Banks will be able to provide their customers with digital money instead.

Powered by either Ripple or IBM's World Wide Network, our economy will flourish in many ways that were never thought possible. Just my opinion :)

I think it will, the emerging of sharing economy is the main reasons why we need blockchain to be the main tools for payment method and money transfer. Not to mention that many individual who are in the sharing economy system has been using blockchain now, but it needs such a big company to start using it, so the government have more concern on blockchain as a money transfer and payment method system.

Blockchain is the future. And many payment systems are already implementing it in their projects. Thanks to the blockchain, it will be possible to track all transactions and possibly work with other cryptocurrencies. Visa has already started the development, which indicates the great interest of potential investors. About ripple? They have no future as the developer holds the coin, not the community. Another thing stellar uses its blockchain for other tokens. This gives great prospects for the future.

If the banks can get benefits from Blockchain, then they might change their regulation and will integrate the system into blockchain. But yes, in the future, Blockchain can be used for many things and not just for the financial field only because blockchain offers so many benefits which never existed before. I believe that the traditional bank or financial institutions will transform into the digital system and they could use blockchain to handle every transaction without a problem.

there has been a lot of interest in blockchain technology in different fields but so far i have only seen decentralized cryptocurrencies like bitcoin and one or two more altcoins outside of top 10 to deliver an actual product. so i don't really expect any revolution to happen in usage of blockchain technology yet.

as for SWIFT, i don't think it will be replaced. instead they may upgrade which people (as users) won't even notice since it would be an internal upgrade. they may advertise it to get the hype of the blockchain buzzword though.

Maybe so, mate. After all, Banks have been starting to adopt Blockchain technology at a slow pace. While the current SWIFT system is still outdated, there's nothing stopping it from upgrading towards Blockchain technology anytime soon. As for Bitcoin and other major cryptocurrencies, they're still unable to deliver a usable product for the mainstream world. The dreaded scalability issues, as well as, regulatory compliance, has kept major cryptocurrencies from becoming widely adopted in the mainstream world.

However, we do know that Blockchain technology brings up many benefits that could change nearly every industry in our world. Once the inherent issues within such revolutionary technology are fixed, then you could expect for companies, businesses, and financial institutions to adopt Blockchain at a large scale.

Most recently, the IMF and the World Bank have created a new cryptocurrency called "Learning Coin". The main purpose of the coin is to educate such entities about the Blockchain technology. This means that we're making progress, and eventually, traditional systems will modernize themselves by switching to Blockchain technology.

Hence, SWIFT could adopt Blockchain technology altogether, or become replaced by its competitors such as Ripple or IBM's World Wire Blockchain. Just my opinion :)

The technology of blockchain is still young and a lot more to improve. It's just a matter of time to maximize its full capability. Developers are continually doing their jobs to have blockchain fita to the current system.

Maybe not replace, but did a good alternative payment system,yes, ripple have all chance did this

Blockchain technology can replace the system we are currently using maybe in around 10-20 years from now but in the near future I dont believe the current system will be replaced

Agree. Even after a decade of Bitcoin's inception, crypto and Blockchain tech are relatively new to the world. Issues are being discovered along the way as time passes by. However, issues are becoming lesser each day as the ecosystem matures in the mainstream world. Blockchain technology at its finest, it's still far superior than the outdated SWIFT system used by many Banks worldwide. Whenever, SWIFT will cease to exist in the future or not, it's another story.

Still though, Ripple's recent partnerships have shown us that Banks are slowly but surely starting to transition to a new Blockchain-based system for finance. As such, if SWIFT doesn't adapt to Blockchain tech, then Ripple will become its successor. There's no doubt about it. On the other hand, IBM has been working with Stellar over the past years to build it's own Blockchain-based system for the world. Now, IBM's World Wire Blockchain Network exists leveraging Stellar's capabilities within the mainstream world.

Therefore, all this means that the competition is getting tougher for SWIFT each day leaving it no choice but to adopt Blockchain technology or face total despair. Just my thoughts ;D

I think this is impossible that blockchain will replaced the SWIFT system by the bank. Because first of all bank will not do an easy way to kill blockchain because people will choose always a blockchain because on it's characteristic is good rather than bank. All we know that bank is full of requirements so people always choosed to have an easy transactions using blockchain.

Banks are follow the old methods so peoples are really accepting the new method so it will be possible in future. Current situation many countries are not accepting the cryptocurrency so peoples also think like that but once it will accepting entire world automatically peoples are change the direction and Blockchain is the ruling community of future market.

Of course, the SWIFT method, which banks used to transfer non-cash money earlier, has long been outdated. It will be gradually replaced by blockchein technology and this is already happening. Many large banks have already switched to using the ripple network and this will continue further until SWIFT disappears just like outdated technology.

Everything will depend whenever SWIFT adopts the Blockchain or not. If it doesn't, then it'll never be able to outpace Ripple itself. But if it does, then it'll become a true contender of many Enterprise Blockchain platforms known today such as Hyperledger and R3 Corda. Things aside, it's interesting to know that Banks have started to embrace Blockchain technology one way or the other. The recent Ripple partnerships, and IBM's World Wire Payments Network based on Stellar should transform traditional finance in many ways.

Whenever it's SWIFT that will remain a key player in this space or not, Blockchain technology will become a part of our daily lives within the future. The only downside to all this, is that Banks will gain more power over people's transactions as everything is transparent, and easily manipulated by centralized entities. Hence, we might be living in a world where Banks dictate what we do with our funds in a worse way than what it is right now. Just my thoughts ;D

Besides this, banks will also turn to marketplaces because entrepreneurs are innovating new technologies which are causing disruptions in the business of banks. They will must start marketplace service because of the entrepreneurs if they don’t do so then their business will fall down. However, let’s talk about bank SWIFT which is making it easy for banks to identify other banks where sending and receiving money is easier between the banks.

All blockchain techs users knows that the system beats the traditional banking system in terms of speed, effectiveness and transparency.
Swift code method is like the analogy version of the blockchain that is digital.
With time analogy gives way to the digital system, just as automatic is better than manual system.

This is a very topical issue at the moment in which the only solution is to introduce cryptocurrency into the banking sector because, as far as I know, an international bank transfer may take several days or in some cases not even go through and this is not normal. That is why the cryptocurrency is needed in the banking sector.

Banking sector has a big amount of inertia. I don't expect such move happen "swiftly"  ;)
They like to play with buzz words trying to get young people use their services. Blockchain is a powerful buzz word lately.

SWIFT is a standard. If some banks don't want to use blockchain or will implement it late, they will not be left out.
So even if some banks would start using certain blockchains for their need, it could be an alternative to SWIFT, but not really a replacement. SWIFT will remain for backward compatibility.
And this will make such a "replacement" even harder/slower.

No. I don't think blockchain are going to replace SWIFT system used by Banks because blockchain would replace the banks entirely.
Banks are excessively costly agents with high commission. There is a high interest gap between what they provide to depositors and what they take from borrowers. Blockchain technology is going to make banks obsolete.

It's definitely something that seems inevitable, if we're looking at the trends with Ripple & now Stellar as well.
Now, I've heard many people say that banks won't let this happen, but I feel that they will have no choice in the end.

They can either get in early (because some of their competition will do so) or they can be left out.
Now, that's not to say banks won't come up with their own solutions, but those might also actually become compatible with Ripple and Stellar etc.

I think we can now see a number of banks in countries that have legalized crypto many have adopted blockchain network technology. they seem to be many who will follow the development of the world. and when everyone uses Crypto I think this technology will really be very useful.

I wonder how someone find XRP interesting to invest these days because this someone just bought about 10M XRP which made the price surge. He must have some information besides hoping he'd profit when bulls finally gets to rally. XRP had been claiming all these bank partners but if its really that true how come they were not buying the coin when its all cheaper for them.

No one is going to replace to any one. Just it was a revolution of the technology that which is the perfect for the users. Another thing is that still the Bitcoin and the cryptos are not legalised most of the big economy. So, in the recent future the Blockchain will not replace the SWIFT system.

Indeed. Banks won't have a choice in the end, as Blockchain technology promises faster and cheaper transactions for their convenience. Knowing this, they've started to explore the technology more thoroughly in order to switch their entire infrastructure towards the Blockchain. My guess is that some Banks will use Ripple's Blockchain tech, while others will use Stellar's Blockchain tech with IBM's World Wire Payments Network.

Then, the outdated SWIFT system would have no choice but to adapt towards the Blockchain as well, or be left behind as other alternatives gain traction. There's a likely possibility that SWIFT will adopt Blockchain technology given how its competitors (Ripple and Stellar) have started to threaten its very existence. If this happens, then our economy will fully transition towards the Blockchain making it more efficient and transparent unlike never before. It's interesting to know how Blockchain has made strides not only in the financial world, but also in other areas such as identity issuance/verification, AI, and more.

Perhaps, in the future, we would be using Blockchain technology more thoroughly in our daily lives without noticing it. This is because, Banks, governments, and other entities will adopt Blockchain technology for everything we're used to in daily life. Nonetheless, whenever SWIFT will become replaced or not, the Fintech sector is advancing at a fast pace. Just my opinion :)

wow, that is unique.
Blockchain replace SWIFT banking system ?
it have a big possible to be, but need a long long time if we look right now.
blockchain is algorythm math with high level security and impossible to hack in block, that is good system to use on bank.

It isn't necessary that some big giants like Ripple have to step up and provide blockchain services to Banks. Blockchain Technology is open-source and anyone can use and develop something out of it. It is quite handy for banking services as financial data can instantaneously remit over blockchain saving banks million of dollars.
In India, banks like ICICI Bank have already starting working on it and have future prospects of shifting to Blockchain based data management so what you are asking is surely achievable. ICICI Bank has partnered with Infoysis Finacle and currently developing first of its kind blockchain based network for international remittance and trade finance.

That's certainly true, mate. Since Blockchain technology is open source, Banks are free to do as they wish with it. They could either join an existing infrastructure like Ripple, or simply form a Blockchain of their own. Both sides have their respective advantages/disadvantages in which Banks have to keep in mind when adopting this emerging technology. If they decide to join Ripple or another Blockchain-based company, they'd gain better exposure towards mainstream finance. But, if they create their own private Blockchain, they would have the ability to control transaction activity at their hearts content.

Things aside, the current SWIFT system used by many Banks worldwide is known to be obsolete. It could survive for a couple of years from now, but it would need to embrace the Blockchain one way or the other. Otherwise, it'll be the end of SWIFT as we know it.

Nonetheless, it's expected that Banks' adoption of Blockchain grows tenfold within a couple of years from now. Once this happens, then our world's economy would improve in many ways that were never thought possible. Just my thoughts ;D

Blockchain technology is the future. And all the structures of the state, banking and other institutions are sure to move to the new system. It's gonna take some time. Banks will be very difficult to resist, so they deal with virtual money. You can't send air. So now the banks are deciding how to issue loans.

I have no doubt that in the near future the payment system will switch to the blockchain, the banks have already experienced it and found it much more convenient than SWIFT, but most likely this system will be completely centralized and very different from the existing platforms like stellar and XRP.

Hmmm… what you're saying is the truth. But I don't really think that banks are going to make use of these altcoins you have mentioned. What they might do is try to build something similar to them that they will be in full control of and that might then serves as a replacement for SWIFT. But we never know yet, or they can still do an upgrade that will help them continue with their current system. We just don't know anything yet.

I think that the blockchain system is better than the swift system used by banks now. Maybe someday this swift system will be replaced by the blockchain system. Indeed the banking world that is expected now is a bank that can cover all banks internationally. Therefore, we no longer need to exchange the money we have with the fiat currency of the country we want to visit. Of course the right thing to accommodate this condition is the blockchain system.

Blockchain will be the best to represent the swift using by banks which will do more or less file keeping and untraceable transaction with a fast and life record .

Banks are still coming back to block chain only that they are trying to tackle crypto as a means of money to not be money which I think is an issue for them on the side of centralized.

well blockchain is really advanced technology and some company need to take the opportunity and upgrade to keep them advanced from their competitors or else they will be left behind.

Banking institutions do not take away the possibility of blockchain technology replacing their current systems. That's why some banks are on the process of testing Ripple platform to see if it can fit into the system. This testing could really take a long time before it can be done perfectly. Along the testing period, there might be another blockchain-based platform that may arise.

Blockchain will probably one day replace SWIFT system in banking, knowing a lot of its advantages. But it doesn't mean that XRP or some coins will be used. It'd better be a completely new coin joining developed by some bank associations. However, every innovation takes time. We can't expect blockchain to replace Swift in any time soon.

Every organization is looking forward to achieving something innovative, through the use of new methods, because you cannot achieve new results, using the same old method.
Despite how successful the old method (Swift system) used by banks, they are still thirty for innovative ideas and technology that could bring better result, which can be through blockchain technology. It is not compulsory that ripple be used, there are still others that can be integrated. It is now becoming competitive.

Its highly possible since Distributed Ledger Technology, (DLT) is showing some impressive results and wide applications in our ever changing world and i have no doubt that in the coming years it will be realized in mean time i hope the Banks will adopt it and use the same revolutionary technology to catch up with DLT base finance and payments platforms.

I think there is a problem. It is difficult to rearrange the global banking system. A radical approach is needed which will allow banks to switch to blockchain. And do not forget that not all countries support new technologies.

this is interesting topics, since cryptocurrency become threat among bank products, and now especially in my country every banks has to develop their product into financial technology development to rival blockchain technology. they start to aware that cryptocurrency with blockchain technology will become more friendly and easy to use within bank products. But if blockchain replaced SWIFT in payment order or any order among banks, it should develop its security.

I think that with the blockchain technology slowly making its way into many fields in our lives and people utilizing it in different projects and not just in finance and economy, it is only a matter of time before the whole world moves toward the next step with it and enter a new digital era, and for banks it is not different because they will find themselves at a disadvantages, so right now we see them starting to move towards and slowly easing their way into it.

Many platforms inclusive of the banks will one day come to the resolution that blockchain has come to stay thus embracing it. But I think for blockchain to achieve this feat it first needs to be scalable thus offering high Transaction Per Second (TPS) in this way causing the neccessry mass adoption.

I doubt if blockchain will make banks obsolete, it's impossible. Both banks and blockchain will co-exist.  I think in future, banks may adopt this innovation by enacting their own blockchain applications but I doubt if many will utilise already existing blockchain architectures like Ripple.

Yes but, how about the people who knows and comfortable with the bank transactions? I know there is a lot of people still will choose bank but some are move forward with advance technology available. But the problem with DLT (blockchain), Banks can replace money loss if proven error made by them but on decentralized approach if you loss a key to youre wallet say goodbye with youre funds. For some people they are scared on that.

Agree, many bank adopt blockchain technology to process their transaction more eficient and less cost. Its hard to replace SWIFT because most big bank use this system and controlled by central banks. Cryptocurrency is peer to peer and i think banking system can not use this system

I think in the future, when the blockchain will have improved bandwidth, I think it is possible and will be replaced, and most importantly , that no one can turn off, because decentralization is the basis of the blockchain.

It will be a difficult task for the blockchain to take over the banks. Government restrictions on cryptocurrencies has an added advantage and will make it a more difficult task.

That's likely to happen because the world today is technologically driven, that is the world likes getting involved with any trending technology, thereby with blockchain being a trending technology now, the banking system will soon adopt so as to be in accordance with what their users will like and be free with. In case they don't, a blockchain platform will put them to check.

They probably will.
The only reason they would do this is for decentralization, security and maybe immutablity. I doubt they will like other important features of blockchain very much(eg permissionless, trustless etc). Some say there is no point for decentralized  system . that things can be better handled on Centralized system

You really stated the fact the way it is. One thing I have come to understand about most platforms in the world is when they realize others are embracing a trend they will follow suit so as to be part of what the future offers.
Blockchain is a technology which has come to disrupt many things, and it is really achieving it, I believe its a matter of patience and we will see mass adoption taking place.

Depending on the development of blockchain ecosystem it can replace the whole banking payment gateways in 20 years. SWIFT system costs more money and transactions are reversable unlike blockchain transactions. Surely, it is not better than blockchain.

Blockchain technology is an innovative that can't be resisted, one day the old traditional banking way will be ignored and there will be general adoption of the technology nearly all part of the world.

If the trend of banking blockchain begins, I am sure that it will be picked up by absolutely all banks. Since the banks will have no other way out.

With technology improved, i think it could happen SWIFT replaced by blockchain technology. Many banks adopting blockchain technology and i think when banks use blockchain technology for every transaction, SWIFT can be old technology for banking technology

One thing that one has to understand when talking about SWIFT is that there are a lot of manual risk evaluation involved and as far as I can see blockchain wont solve them ( this is regarding large transfers) . The blockchain is very promising when it comes to relatively small international transfers.

I hope that soon banks and governments all around the world will start accepting crypto and receiving crypto in personal bank account will be just like receiving foreign currency that automatically converts to local currency. I think when this will hapoen we will achieve the peak of crypto adoption right at that moment.

it looks like the blockchain will be used by many industries, especially banking, but not to adopt cryptocurrency, only technology and blockhain systems will be used

Agree. Banks could either use a Blockchain system of their own, or simply join an existent Blockchain (mostly centralized) like Ripple or Stellar. On the other hand, SWIFT could either join the Blockchain or remain as is. But, that doesn't matter because Banks have slowly been adopting Blockchain technology for their own benefit. With or without SWIFT, I believe that our current financial system will be greatly improved in the future. Within a few years from now, we might not be using physical cash, but rather a "digital" version of Fiat.

There's a high probability that central banks will be using their own Blockchain ledger, instead of an existent one like Ripple, because it gives them greater control over transactions made worldwide. They could easily check balances, restrict accounts, or even freeze them with ease. A Blockchain system governed by Banks would be viable for the next generation of Fiat currency.

Nonetheless, Blockchain technology is still fairly new to the world. Which means, that it's still early to determine whenever it'll be the ideal solution for finance or not. As time goes by, technology will improve in many ways. Given the uncertainty of crypto and Blockchain tech, no one knows what will happen in the future. Just my thoughts ;D

Most companies now are beginning to consider the use of blockchain the technology to operate their entire system and I think when it starts becoming glaring that blockchain technology is pushing swift out of the system already, they will also act fast on developing their own blockchain too, which is why I still believe that SWIFT may not really go out of fashion in any time.

They have very strong technology that has been able to sustain the company for a very long time which I am sure they will not be willing to give up anytime soon provided the team behind their technology is still much alive and following trend.

Stellar could adopted by many banks and for bussiness or financial service. About SWIFT, blockchain is efficient technology and very transparant ledger, if banks use blockchain technology, i think SWIFT could replace by blockchain

Yes. One way or another, mainstream businesses and financial institutions will start embracing Blockchain in every way. SWIFT can either join the Blockchain or be left behind as Banks look for other solutions that will increase efficiency over mainstream transactions. The most likely situation would be, that Banks will devise their own private Blockchain for better control over people's transactions. While Ripple provides a centralized solution that is regulatory-compliant, it may not be enough for most central banks worldwide.

As a result, private Blockchains will better suit their purpose for B2B transactions giving centralized entities complete control over the network's activities. On the other hand, public Blockchains like Bitcoin and Ethereum will better suit their purpose for decentralized payments that are secure and censorship-resistant for the world. Hence, it's not about SWIFT or Ripple, but rather how Blockchain could transform our economy for the better. Just my thoughts ;D