Will the SWIFT system ever be replaced by XRP?

[doomloop]

Crypto is the future. Even banks have shown interest in it. Especially the tech underpinning crypto (which is Blockchain tech). At the time of this writing, there are plenty of banks who have a strong partnership with Ripple. Some of them have even tested XRP for B2B (Bank to Bank) transfers. Would you imagine the XRP Ledger being used at a large scale for cross-border payments? It would prove to be more cost-efficient, faster, and secure than the outdated SWIFT system.

What's keeping SWIFT alive is none other than "trust" among major banks in the world. Ripple's XRP, on the other hand, is relatively new to the world. To build up trust, Ripple needs to prove it's the ideal replacement of SWIFT. Slowly, but surely it will get there. Assuming SWIFT doesn't adopt Blockchain tech and US regulators treat Ripple nicely. We can't predict the future, so I'd hope for the best.

To be fair, XRP is getting a few banks cancelling after their legal dispute, so I do agree that we are going to see Banks use blockchain a lot more, but it doesn't have to be XRP, we could see them do it themselves in the future when they get to that point.

I have seen XRP grow with B2B but that doesn't mean that XRP will be loved by these banks forever, and this legal dispute they had proved that. With them shrinking, the XRP coin got a bit lower as well, proven by the fact that many of the coins not only went their all time high prices in 2021, they went higher, and then in 2024 they went higher as well, whereas XRP is still lower than the 2018 one, so it's clear that XRP is still very low and can't reach the previous all time high, proving that it's not that much liked at all.

[CK485]

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.

It is difficult to compete with the system between XRP and SWIFT, it seems difficult to become a reality, there are indeed limitations of XRP in terms of its volume, and that is a difficulty in itself or by establishing cooperation between larger financial companies, so that it can increase the currency, but that is difficult to do.

[Abiky]

To be fair, XRP is getting a few banks cancelling after their legal dispute, so I do agree that we are going to see Banks use blockchain a lot more, but it doesn't have to be XRP, we could see them do it themselves in the future when they get to that point.

I have seen XRP grow with B2B but that doesn't mean that XRP will be loved by these banks forever, and this legal dispute they had proved that. With them shrinking, the XRP coin got a bit lower as well, proven by the fact that many of the coins not only went their all time high prices in 2021, they went higher, and then in 2024 they went higher as well, whereas XRP is still lower than the 2018 one, so it's clear that XRP is still very low and can't reach the previous all time high, proving that it's not that much liked at all.

What's stopping banks from copying XRP's source code and launching a blockchain of their own? They will do what's best for them. If Ripple (the company) wants to be in the game, it needs to obtain the favor of banks and regulators alike. Remember when Facebook tried to launch a stablecoin-backed blockchain ledger, only to be turned down by regulators in the long run? The same might happen with Ripple's XRP if it's careless.

It's all about making the regulators happy to keep moving forward. Especially with a centralized "shitcoin" such as XRP. The odds of XRP Ledger replacing SWIFT are slim. But anything's possible. If the project focuses on utility instead of hype, it will be getting somewhere. Just my thoughts.

[WillyAp]

Ripple should negociate with BIS then.
They have a new system in the works. So better hurry.

[DeathAngel]

XRP offers faster & cheaper cross border transactions compared to the SWIFT system but it faces significant regulatory & adoption challenges. SWIFT has established big relationships with financial institutions worldwide. The transition to XRP or any alternative would require widespread acceptance & integration within existing financial frameworks making an outright replacement unlikely in the near future. Advancements in blockchain tech may influence future developments in international payments.

[WillyAp]

XRP offers faster & cheaper cross border transactions compared to the SWIFT system but it faces significant regulatory & adoption challenges.

So do many other coins.
Main difference is that swift can be used to get a transfer back.

[hero_the_bossman]

XRP offers faster & cheaper cross border transactions compared to the SWIFT system but it faces significant regulatory & adoption challenges.

So do many other coins.
Main difference is that swift can be used to get a transfer back.

SEC is off the hooks of XRP, and Garry is gone soon too - maybe we will see something out of it in the end, however, I don't see it as being adopted in a broader sense.
Maybe in some decades or so things would look differently.
XRP is limited and not so reliable, especially for institutions.

[EarnOnVictor]

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.

They should continue to hope, it will not happen. I don't know why people think like that, a blockchain system like Ripple that is not even trustworthy with enough court cases will replace the SWIFT system, that must be a joke. By virtue of how the SWIFT system works, it's a blessing to the economy and many banks benefit from it. So all the benefits will now go to Ripple, just like that?

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

I don't know what XRP tends to achieve with that because it is an unstable coin, it is not reliable, and a stablecoin is better for that purpose.

[beerlover]

What's stopping banks from copying XRP's source code and launching a blockchain of their own? They will do what's best for them. If Ripple (the company) wants to be in the game, it needs to obtain the favor of banks and regulators alike. Remember when Facebook tried to launch a stablecoin-backed blockchain ledger, only to be turned down by regulators in the long run? The same might happen with Ripple's XRP if it's careless.

It's all about making the regulators happy to keep moving forward. Especially with a centralized "shitcoin" such as XRP. The odds of XRP Ledger replacing SWIFT are slim. But anything's possible. If the project focuses on utility instead of hype, it will be getting somewhere.

It's obvious that we are not going to get anything great out of this, it's just not possible and we can't make that work at all, it's just not that simple and can't move forward with life at all, should be a proper period where people realize XRP is just a shitcoin disguised as a financial product that's it.

This isn't a simple feat though, it's been a decade and there are still people trusting it for some reason, but at least we have seen it go down from second rank, and we are seeing it do much better these days, so we need to learn to trust it one way or another, that's the way things move and that's how we could make some good sense in this market as well. XRP is just a shitcoin and my only advice would be staying away from it.

[JeffBrad12]

XRP offers faster & cheaper cross border transactions compared to the SWIFT system but it faces significant regulatory & adoption challenges.

So do many other coins.
Main difference is that swift can be used to get a transfer back.

I think this is also the main thing that hold back institutions from adopting XRP, the irreversible nature of the transaction, we all know there's few case where banks just got stolen of their balance and with SWIFT it's irreversible, the damage can be undone as long as it's not too late but i'm not so sure about XRP, since XRP is irreversible as far as I know, maybe the financial institutions are just so doubtful whether the benefit of cheap and fast transaction outweight the disadvantage of mitigating danger.

[Abiky]

XRP offers faster & cheaper cross border transactions compared to the SWIFT system but it faces significant regulatory & adoption challenges. SWIFT has established big relationships with financial institutions worldwide. The transition to XRP or any alternative would require widespread acceptance & integration within existing financial frameworks making an outright replacement unlikely in the near future. Advancements in blockchain tech may influence future developments in international payments.

That's what I've been saying all along. SWIFT is deemed trustworthy, while Ripple's XRP Ledger is not. I think this has to do with the fact that SWIFT's been a long time in the system (seniority). XRP is relatively new to the world, with just 10 years in the making. Banks will prefer SWIFT because they trust it. Even if SWIFT is often slow and expensive to use.

Believe me, the time will come when XRP will render SWIFT obsolete. Assuming SWIFT doesn't make use of Blockchain tech in the long run. If it does, then there would be no need for XRP. Who cares what will happen with a "centralized shitcoin", anyways? Bitcoin is the only coin we need to achieve true financial freedom and self-sovereignity. As long as it's still alive, nothing else matters.

[john_egbert]

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.

They should continue to hope, it will not happen. I don't know why people think like that, a blockchain system like Ripple that is not even trustworthy with enough court cases will replace the SWIFT system, that must be a joke. By virtue of how the SWIFT system works, it's a blessing to the economy and many banks benefit from it. So all the benefits will now go to Ripple, just like that?

If it is to happen, it will be a decades-long grind between those two, and even then - whales and institutions are all in for the systems that already work nicely.
Risks are not for them.

[WillyAp]

SEC is off the hooks of XRP, and Garry is gone soon too - maybe we will see something out of it in the end, however, I don't see it as being adopted in a broader sense.

The world is bigger than the US.
Still banks look to the US for guidance and finance.

[barbara44]

XRP offers faster & cheaper cross border transactions compared to the SWIFT system but it faces significant regulatory & adoption challenges. SWIFT has established big relationships with financial institutions worldwide. The transition to XRP or any alternative would require widespread acceptance & integration within existing financial frameworks making an outright replacement unlikely in the near future. Advancements in blockchain tech may influence future developments in international payments.

That's what I've been saying all along. SWIFT is deemed trustworthy, while Ripple's XRP Ledger is not. I think this has to do with the fact that SWIFT's been a long time in the system (seniority). XRP is relatively new to the world, with just 10 years in the making. Banks will prefer SWIFT because they trust it. Even if SWIFT is often slow and expensive to use.

Believe me, the time will come when XRP will render SWIFT obsolete. Assuming SWIFT doesn't make use of Blockchain tech in the long run. If it does, then there would be no need for XRP. Who cares what will happen with a "centralized shitcoin", anyways? Bitcoin is the only coin we need to achieve true financial freedom and self-sovereignity. As long as it's still alive, nothing else matters.

It's not even just seniority, it's just trusted more and that's it, even if both started at the same time, SWIFT provided proof that it's great, and there is no volatility and it's just moving money from one place to another, XRP on the other hand is not, it's a coin, and ripple is the company that uses blockchain to move money around, but it takes layers, and there is no need for it.

In the end, there is no argument here, SWIFT is just far superior way to move money from one way to another for those banks, and because of that, timing doesn't matter, SWIFT could have started even after XRP was invented, and it would still be used more, because it's a better way to do it, so why would banks not go with the better method and use XRP instead?

[TastyChillySauce00]

XRP offers faster & cheaper cross border transactions compared to the SWIFT system but it faces significant regulatory & adoption challenges.

So do many other coins.
Main difference is that swift can be used to get a transfer back.

irreversible means nothing if both financial institutions trusts each other because they can just send it back if things goes wrong, I think these big financial institutions will eventually find a big road block towards increase in efficiency and will ditch SWIFT eventually and try out XRP instead.

as always, the nature always prefer things to be effective and fast so does these big financial institutions they gotta need to pump that number up and SWIFT will be seen as the thing that pull them back.

[WillyAp]

as always, the nature always prefer things to be effective and fast so does these big financial institutions they gotta need to pump that number up and SWIFT will be seen as the thing that pull them back.

BIS worked on mBridge.
Swift is planning an alternative for their own system.
https://www.reuters.com/business/finance/swift-planning-launch-new-central-bank-digital-currency-platform-12-24-months-2024-03-25/