Will Blockchain replace the SWIFT system used by Banks?

[BeManga]

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?

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.

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[thunderbitz2717]

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.

[Lagonda]

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.

[Mysteryla]

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.

[masterrex]

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?

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.

[anatolij.shishkin]

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.

[thefaucetrunner]

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.

[Shenzou]

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.

[irixo10]

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.

[ub27]

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.

[bgaf]

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.

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.

[efxtrader]

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.

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

[MIner1448]

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.

[Ifychuks]

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.

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.

[rdewilde]

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.

[Ucy]

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

[Chuky92]

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.

[seleme]

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.

[Olatunjex]

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?

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.

[ahmed04]

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.