Will the SWIFT system ever be replaced by XRP?

[WeThePe0ple]

I know that it's an old claim that XRP was going to replace SWIFT.
However I think that it's a false assumption to say that because it didn't happen in the last 5 years, it is bound to never happen.

Ripple has survived all court cases and is the only altcoin with regulatory clarity. Correct me if anything I am writing is wrong.
To me it makes sense that all these regulatory issues delayed the growth of XRP. But it seems evident to me that SWIFT is outdated, and eventually will have to be replaced by a crypto currency. SWIFT is slow and expensive. XRP seems to resolve a lot of these issues, but I think it is not the only competitor to replace SWIFT.
However, I don't think those competitors have regulatory clarity. The CEO of Ripple stated to have many non disclosure agreements with banks all over the world. I don't know why so many people ignore this, and label XRP a dying altcoin. If XRP gets to replace SWIFT, I think it will happen overnight with the banks buying up all tokens before any of this information gets out.

I read this post in a YouTube comment. Can anyone tell me what is false about these logics?
The price prediction seems outrageous but I'm already happy with a 10x on my investment in the long run.

The real value of XRP is approximately $ 1 000 000 per XRP at the current monthly growth rate, discounting how long it can last, at the time of typing this comment. That's fairly conservative by the way. I factored in how long it can last, which is 70 000 years at the current burn rate of 0.00001 XRP and got close to $ 4 000 000 per XRP. This baby needs to be ultra expensive in order for it to last.

Remember, it does billions of transactions per month. The burn rate is constant. If the price is very high, there's a whole lot more worth in a drop than when XRP is cheap. Also, as the nodes increase due to transaction growth, the price will skyrocket, obviously.

 Also, people say XRP needs to be backed by commodities. Sure, it can be a derivative, maybe that's why they joined the ISDA. But it does not need to. It's pure essence is it's value, it's liquidity. It's just a bridge and store of value. It will be backed by what will be running on the XRPL. Deriving it's value from commodities as a derivative like backing it with gold will only complicate things.

Ripple joined the ISDA so that it could get all that value juice onto the XRPL and have XRP act as a derivative contract. So a car tokenized on the XRPL will be represented by however much the worth of the car is relative to the price of 1 XRP. This NFT will be a derivative contract called an Option contract, where the owner of the NFT will have the right to sell the car (NFT)  and any other market participant to buy the car (NFT) at a predetermined date. Or it can be used for Commodity Swaps as CBDCs will be backed by gold and/or other commodities.

I can give many examples. XRP WILL BE THEEEE SUPER DERIVATIVE ASSET. The CBDCs will be backed by gold, and will run on whichever network it commands at the time depending on the transaction type and the type of value being transmitted on the network. XRP IS A DERIVATIVE. IT WILL DERIVE IT'S VALUE FROM THE ASSETS THAT WILL BE RUNNING ON IT. Hence it will be a stable coin because even if people sell in hopes of making money (which they will), they'll just be exchanging value for value. And the stabilization mechanism which is the dichotomy between the burn rate and the transaction fee, will always keep the price stable.

Some say that XRP lost its use case when stablecoins came into existence. I don't know if that is true

[Tipstar]

Has been hearing the same question for 10 years now and in this period, Ripple has just moved downwards. I don't know what legal and technical approach Ripple might have made but we don't seem to be having it as an alternative for swift and crypto mostly has been used as an alternative to banking system let alone the swift system. There are works of global acceptance of crypto as it is or converting it into fiat value. Stablecoins like USDT and USDC has made it easier for people to transfer the value without using the banking system.

[WillyAp]

I think its more an inner banking circle coin.
The bank won't give users a benefit.

[420 Seeds]

I have read XRP was massively premined, majority-owned by the core team and founders, and many people do not consider it to be a legit crypto. Since there is nothing there to scare away central bankers, Yes it could still happen.

[Patikno]

In terms of infrastructure, Ripple should be able to replace SWIFT, because as far as I know, SWIFT only has 523 TPS while Ripple is able to do even 3 times what SWIFT does. Then SWIFT is a centralized system, which is weaker than decentralized Ripple. But the reality is not like that, we know that Ripple has many problems, starting from cases with the SEC, developers who pre-mined excessively and others.

[WeThePe0ple]

Has been hearing the same question for 10 years now and in this period, Ripple has just moved downwards. I don't know what legal and technical approach Ripple might have made but we don't seem to be having it as an alternative for swift and crypto mostly has been used as an alternative to banking system let alone the swift system. There are works of global acceptance of crypto as it is or converting it into fiat value. Stablecoins like USDT and USDC has made it easier for people to transfer the value without using the banking system.

The price has been moving downwards, but the infrastructure and legal proceedings have not. The fact that token price has been disappointing for so long, seems to be the main argument of 95% of investors not to buy it. But the price depreciation in my opinion says nothing about the long term potential. It's like investing in land in one of the BRICS nations. There is no prosperity yet, but I believe you can reap the benefits a decade later.

Bitcoin has no CEO to sue, which is why it has grown without limits. Every altcoin that intends to threaten the powerstructure of the ruling monetary system, is bound to face judicial pressure. I think that the SEC delayed this whole process because the big banks want to prepare themselves for XRP takeover. There also needs to be cooperation on a international scale. It does not surprise me that the integration of such a system takes more than 5 years of legal battles to be completed.

The big banks want to implement their CBDC's now that the current monetary system has reached its end. I keep reading that they can build it on XRP and they now have regulatory clarity to do it.

To me it is a certainty that SWIFT will be replaced. The question is just with what, and when. But I still think of XRP as the top contender, because of regulatory clarity.

[WeThePe0ple]

I have read XRP was massively premined, majority-owned by the core team and founders, and many people do not consider it to be a legit crypto. Since there is nothing there to scare away central bankers, Yes it could still happen.

I don't know why the pre mining is such a problem, as long as the amount of available tokens is limited. Which guarantees scarcity.
Also tokens have to be burned to be able to complete transactions, which pushes the price up.

I don't know why major ownership by a core team is a problem either. You could say the same about Michael Saylor's bitcoin holdings.
The entire bitcoin supply of this moment (let's say 95% of the entire supply) is owned by less than 1% of the global population. I'd say that is more concentration of wealth than the XRP situation.

[ekotyo24]

The view that XRP lost its usefulness with the rise of stablecoins does exist, but this is a debatable interpretation. Stablecoins were created to overcome crypto price volatility by being backed by assets such as fiat (for example USD), so they are more stable and often used for daily transactions or storing value. However, stablecoins and XRP have different goals. while stablecoins do provide a stable alternative for the storage and transfer of value, XRP retains advantages in the areas of high-speed, low-cost cross-border transfers that have not been completely replaced by stablecoins.

[crwth]

No, I don’t think it will ever be replaced, and it's all just a fluke. It wouldn’t be enough to replace all. Additionally, with the surrounding Issues with XRP, it’s not a surprise that it hasn’t been used. I imagine if it had come to this, there would be a lot of news about it, but I don’t think there is for now.

Are there a lot of people expecting this?

[WeThePe0ple]

No, I don’t think it will ever be replaced, and it's all just a fluke. It wouldn’t be enough to replace all. Additionally, with the surrounding Issues with XRP, it’s not a surprise that it hasn’t been used. I imagine if it had come to this, there would be a lot of news about it, but I don’t think there is for now.

Are there a lot of people expecting this?

Try sending 5000 euros from Europe to Brazil.
High costs, and it takes about a week to get there. Multiple banks involved, multiple staff members. You get questioned about the purpose of the transfer as if the money is not really yours.

This innovation has to happen but it takes a very long time to get deployed.

I'm pretty sure that innovation is inevitable, but I am not sure if XRP will be the chosen token.
There are competitors, and I keep hearing that banks are developing their own blockchains behind the scene.

[WillyAp]

Try sending 5000 euros from Europe to Brazil.
High costs, and it takes about a week to get there. Multiple banks involved, multiple staff members. You get questioned about the purpose of the transfer as if the money is not really yours.

I'd use Litecoin, takes 3 minutes and cost about 0.01 Cent.
It takes more time if you need to buy the coins 1st, a wire transfer to moonpay takes 2 days.

[Reatim]

we know that Ripple has many problems, starting from cases with the SEC,

I would cross this one out because it has been resolved already or at least partially. They just need to pay a fine, not by a small amount, but still it is better than what SEC was asking of them initially. From $2 billion to just $125 million. Not that bad, at all I would say.

SEC might try and appeal once more but the fact that this long lawsuit has come to an end gives investors a sigh of relief. I think from now on they can focus more on solving the problems the system has.

[Patikno]

I would cross this one out because it has been resolved already or at least partially. They just need to pay a fine, not by a small amount, but still it is better than what SEC was asking of them initially. From $2 billion to just $125 million. Not that bad, at all I would say.

SEC might try and appeal once more but the fact that this long lawsuit has come to an end gives investors a sigh of relief. I think from now on they can focus more on solving the problems the system has.

You're right, but can reputation be bought? Since the cases that happened to Ripple, the community is no longer very confident in Ripple, even though they're still continuing to develop their network, but people already have distrust, it could be that one day in the future Ripple will be hit by the same case. I ask you, even if for example the Terra case is over and they restore their good name, will you invest your money there? I doubt you will.

[TastyChillySauce00]

I don't think even 10 years into the future that XRP will eventually replace SWIFT though, the main reason why SWIFT despite already said to be outdated by you still thrive because it just works moreover it's robust and already tested in regard of its reliability.

when we talk about banking system like SWIFT, we also talk about adoption and most of the banks and financial institutions aren't gonna migrate to other system just because it's old. so it's not just matter of creating "better" technology and somehow all banks and financial institutions suddenly migrate their things over to the newer system. migration is expensive and most bank just back out from doing so.

despite XRP has been winning on their court case I just can't really see them replacing SWIFT after all, bank keep fragmented and legacy backend and they will do the same this time around. therefore I don't expect XRP to grow in term of price that much unless it can do what it's really promised to do which is adopted by the banks.

[FortuneFollower]

I would cross this one out because it has been resolved already or at least partially. They just need to pay a fine, not by a small amount, but still it is better than what SEC was asking of them initially. From $2 billion to just $125 million. Not that bad, at all I would say.

SEC might try and appeal once more but the fact that this long lawsuit has come to an end gives investors a sigh of relief. I think from now on they can focus more on solving the problems the system has.

You're right, but can reputation be bought? Since the cases that happened to Ripple, the community is no longer very confident in Ripple, even though they're still continuing to develop their network, but people already have distrust, it could be that one day in the future Ripple will be hit by the same case. I ask you, even if for example the Terra case is over and they restore their good name, will you invest your money there? I doubt you will.

Credibility goes a long way, you are right, and it's much harder to get it back from the cases that XRP witnessed and experienced.
And as TastyChillySauce said, it's expensive to go around legacy code, thus, why even bother to use something new when there is a reliable alternative? The pros should be bigger than the cons of such act, if it ever happens.

[WeThePe0ple]

I don't think even 10 years into the future that XRP will eventually replace SWIFT though, the main reason why SWIFT despite already said to be outdated by you still thrive because it just works moreover it's robust and already tested in regard of its reliability.

when we talk about banking system like SWIFT, we also talk about adoption and most of the banks and financial institutions aren't gonna migrate to other system just because it's old. so it's not just matter of creating "better" technology and somehow all banks and financial institutions suddenly migrate their things over to the newer system. migration is expensive and most bank just back out from doing so.

despite XRP has been winning on their court case I just can't really see them replacing SWIFT after all, bank keep fragmented and legacy backend and they will do the same this time around. therefore I don't expect XRP to grow in term of price that much unless it can do what it's really promised to do which is adopted by the banks.

Most people don't believe it, but we will reach the end of the current monetary system before 2030. Probably under the next presidency.
It is a mathematical inevitability. Economists have calculated a decade ago that when the USA reaches 33 trillion USD of national debt, the system becomes highly unstable. We are beyond that point now. The debt is 35 trillion USD and one trillion is added every hundred days.

Why is that a problem? Because society has to pay intrest on the debt. The amount of intrest paid on the 35 trillion debt burden, has now surpassed the annual budget for the entire military. And this will get worse in years to come, because the debt grows rapidly. Within 5 years, RFK and his administration have calculated that 50% of all American tax revenue will vanish as intrest payment on the national debt.

This means that there will be no money at all for public services. Long story short, society will collapse and it will take SWIFT down with it.
Banks will start failing through mortgage defaults.
The current monetary system is a legalized Ponzi scheme based on ever escalating debt, until intrest can not be paid anymore and the Ponzi scheme collapses.
It is inevitable, and it will be replaced. The question is with what.

Ripple is surely not the only candidate but it is one of the horses I am betting on.
I also bet on bitcoin because it seems evident to me that governments will hold it as a reserve asset, aside from gold.
There will have to be new currency and I believe it will be blockchain based. Possibly backed by bitcoin.

[pooya87]

I know that it's an old claim that XRP was going to replace SWIFT.
However I think that it's a false assumption to say that because it didn't happen in the last 5 years, it is bound to never happen.

There was no need for 5 years to pass for people to realize how silly such a claim is.
Besides, the shitcoin pumpers always make such claims to attract attention of "gamblers" aka day traders to the shitcoin they want pumped. There has been lots of silly claims about a lot of shitcoins and shittokens from solving the energy problem all the way to revolutionizing gaming industry

SWIFT is a centralized system that is in control of the government and is used as a weapon by the United States. They can never do that using XRP, a centralized shitcoin in control of a company.

To me it makes sense that all these regulatory issues delayed the growth of XRP. But it seems evident to me that SWIFT is outdated, and eventually will have to be replaced by a crypto currency. SWIFT is slow and expensive. XRP seems to resolve a lot of these issues, but I think it is not the only competitor to replace SWIFT.

They may improve it some day, specially when actual competition surfaces (like BRICS). But it still won't be replaced by XRP ever.

The real value of XRP is approximately $ 1 000 000 per XRP

This is another very old technique used by pumpers. They make outrageous claims about the shitcoin they want pumped to attract people by playing with their greedy nature.

Just think about those numbers.
If "real value" of a centralized shitcoin without any utility that has a 56 billion circulating supply is $1 million then what do you think the "real value" of bitcoin with actual utility and only 19 million circulating supply is?

I'd say when bitcoin is only $60k with that supply, the $0.5 price for XRP is way above its real value and it has to dump down at least to $0.0001 to be closer to its real intrinsic value.

[hugeblack]

The problem is that despite the many years in which these claims have been made, XRP is very far from competing with the SWIFT system. On the contrary, these systems are controlled by countries and will not think of making them decentralized even if it is at the expense of making transactions cheaper and slower. Even if we assume the success of the protocol, it will not be on the XRP network, as governments will not risk placing financial centers in a single company that is not owned by those countries. In short, comparing XRP with SWIFT is illogical.

[WeThePe0ple]

They may improve it some day, specially when actual competition surfaces (like BRICS). But it still won't be replaced by XRP ever.

I don't know for sure. I keep hearing that their CBDC's (let's hope for mankind that this will not happen, as this is digital slavery) would run on XRP. If XRP will not be used in this manner, I wonder why Ripple has so many non disclosure agreements with banks all over the world. I can't imagine that Ripple would be doing all of this if they didn't intend to be a part of the monetary system. If the CEO didn't believe that he could be a part of the monetary system, would he not have given up by now?

The real value of XRP is approximately $ 1 000 000 per XRP

This is another very old technique used by pumpers. They make outrageous claims about the shitcoin they want pumped to attract people by playing with their greedy nature.

Just think about those numbers.
If "real value" of a centralized shitcoin without any utility that has a 56 billion circulating supply is $1 million then what do you think the "real value" of bitcoin with actual utility and only 19 million circulating supply is?

I'd say when bitcoin is only $60k with that supply, the $0.5 price for XRP is way above its real value and it has to dump down at least to $0.0001 to be closer to its real intrinsic value.

This is what I used to think. But there is 1 thing missing.
Bitcoin has a fixed supply but you don't have to burn bitcoin to make a transaction. The supply remains fixed to the amount of BTC that has been mined at that point. It was intended as a store of value (which it is) but it is not very suited as a medium of exchange because it is too slow for that. So while BTC is a good store of value, completely out of government hands, it is not a good medium of exchange.

For XRP there is a burn rate per transaction, which bitcoin does not have. I believe it is 0.0001 XRP per transaction. However with millions of transactions per day on a global scale, this adds up quickly. This decreases the supply of XRP and it is inflationary for the token price. Someone has calculated that XRP could be running for 70 years at that burn rate, but I have to verify this. So you can't think of XRP being fixed at 100 billion permanently. This number will decrease as adoption rises. In the current SWIFT system, there are roughly 5000 financial transactions per second globally. BTC could never process this. XRP could. It would bring down the 100B max supply and cause the price to rise.

With the maximum BTC supply at 21 million and the maximum XRP supply at 100 billion, you could say that 1 BTC is roughly as rare as 5000 XRP at this point.
However, this does not include that XRP has a burn rate.
5000 XRP costs about $2500 today. 1 BTC is about 30x that amount, because its market cap is roughly 30x the one of Ripple.
I am hoping that my $2500 XRP investment will ever be the equivalent of owning 1 BTC.

Claiming that 1 XRP could reach a million dollars seems very silly. I don't believe it either. But if XRP gets chosen and only 1% of the SWIFT system gets to the XRP ledger, this would pump the price of XRP over $100 overnight. This is a 200x on my investment, and would make my life very comfortable.

I could have kicked myself in the nuts for not buying BTC when I first heard about it at $150.
My arguments were that holders would be taxed the sh!t out of upon conversion to euro/dollar. Or they would be jailed, or unbanked. But even if this had a 80% chance of being true, I should have invested $1000 in case I was wrong.

The main lesson I learned is that if I believe that some coin has a 20% chance of mass adoption, I am going to bet 1 monthly net wage on that coin. At the moment I am doing this with 3 altcoins. Everything else I own is BTC and ETH (85% allocation) which I do not intend to sell in the next 20 years.

[WeThePe0ple]

The problem is that despite the many years in which these claims have been made, XRP is very far from competing with the SWIFT system. On the contrary, these systems are controlled by countries and will not think of making them decentralized even if it is at the expense of making transactions cheaper and slower. Even if we assume the success of the protocol, it will not be on the XRP network, as governments will not risk placing financial centers in a single company that is not owned by those countries. In short, comparing XRP with SWIFT is illogical.

I believe that the transition takes a lot of time. Maybe even a decade. I also believe that SWIFT will come down when the global debt bubble bursts, somewhere in the next 5 years. There will have to be a substitute, and I wonder on which tech their CBDC's will be running. But it can't be SWIFT.

Even if it is true that most governments will not have their digital currency run on XRP, I wonder what happens to the token price when a few tiny countries do decide to take part in it.

Even if there is a 80% chance that XRP will never achieve mass adoption, I'm holding on to my small allocation in case I am wrong. I think it's either a 200x (or more), or going to 0.