Ripple’s mission is often described as substituting SWIFT as the world’s standard system for settling international payments. It is a natural way to see it because, in the end, both systems should get the same results. Except Ripple is way cheaper, faster, and more reliable than SWIFT. But let’s take a closer look.
Just yesterday, @DiepSanh published a short interview featuring Marjan Delatinne, who currently works at Ripple but used to be an employee of SWIFT. This is a person who knows both systems inside and out and, in the interview, she says that they are completely different things which are not in opposition, but that could be complementary as long as the markets are willing to work along both at the same time.
Let’s review some of the basics so we can understand Mrs. Delatinne’s statements in full.
SWIFT stands for “Society for Worldwide Interbank Financial Telecommunication.” It’s based in Belgium, and it was founded back in 1973. This is the system that banks use all over the world to settle transactions across borders. This is a system that was created before the internet when telegraphs and telex were the fastest means to communicate.
That means unlike Ripple, it’s slow, expensive and prone to error. Also, SWIFT doesn’t really allow for its members to exchange money, just information. Imagine Bank A saying to Bank B (in some other country) if you pay X dollars to this client you have in your country, you’ll get them back from me at the end of the week, or month or whatever the business cycle is.
As the system’s name says, it’s a telecommunication system, nothing more. And in an age in which telecommunication is all about mobile phones, Skype, Whatsapp, emails, and the internet, SWIFT’s telecommunication system is painfully primitive.
Ripple and SWIFT are doing different things
— Steven Bull Diep (@DiepSanh) October 8, 2018
Ripple is a different animal, according to Mrs. Delatinne. Banks using Ripple’s technologies are not just exchanging slow messages that promise to settle payments in the future.
Utilizing the blockchain technology and Ripple’s XRP digital asset, the platform allows for banks to have the transaction settled in full in a matter of minutes. So Ripple is not the new email for banks. They don’t exchange just information about promises to pay and exchange money. They actually can exchange money, in minutes, using Ripple’s applications and tokens.
In the former SWIFT and current Ripple employee view, the markets will end up choosing the better option on their own, but there is enough space for both systems to co-exist together as they provide the same customers with services that are fundamentally different. In the end, the banks and other financial institutions will come to see which option improves the end user’s experience the most.
Ripple has the potential to correct many inefficiencies in the international transfer and remittances markets, and it’s doing it, slowly but surely. Will it take over SWIFT? Maybe it doesn’t need to. Perhaps both systems can work in tandem, as suggested by Mrs. Deltainne in such a way as to improve user experience by combining the best of both worlds.
And this doesn’t apply to Ripple only. Remember that Stellar Lumens has IBM’s support to attack the very same market, and they have been gathering partners almost as important as Ripple’s.
For the global insights every crypto trader must have, apply for Elite membership!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Twitter
Elon Musk Advises Crypto Users To Secure Their Crypto Keys Properly
The crypto community has not gotten over the fact that the world’s richest man has now invested in Bitcoin and has been pretty active in the industry.
However, the community is now receiving security tips for storing cryptocurrencies from Tesla’s chief executive officer. While pointing the security of cryptocurrencies, Tesla also criticized Freewallet app, a crypto wallet for its slack in security.
He also added that crypto investors should not bother doing business with wallets that don’t provide them with private keys.
Users should store their private keys
The unique way cryptocurrencies are stored makes them not redeemable when the keys are lost. Whether the holder stores them with third-party custodians or exchanges, the owner can only claim them when they provide keys to the crypto funds.
That makes securing the keys the most important thing when dealing with cryptocurrencies. As a result, selecting the safest hot or cold wallet is a priority if users want to keep their crypto investments safe.
Elon Musk has come out to advise investors to always store their private keys personally. For a company to receive the attention of the world’s richest man is something to take advantage of to grow. However, FreewalletApp’s short conversation with Musk is a sort of negative publicity to them.
After the company engaged with Musk about a Dogecoin-related post, the Tesla founder pointed out faults with the firm.
He advised digital asset investors to stay…
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
Partnership Between Bridge Mutual & AllianceBlock Announced
Decentralized peer-to-peer discretionary digital asset coverage platform Bridge Mutual has announced a partnership with AllianceBlock. AllianceBlock is a decentralized, blockchain-agnostic layer 2 protocol bridging decentralized finance with traditional finance. The partnership will allow AllianceBlock and Bridge Mutual to provide traditional investors with a protected bridge to DeFi through decentralized coverage.
“Discretionary coverage is a very important part of our ecosystem, so we are excited to partner with Bridge Mutual and leverage each other’s technologies,” says Rachid Ajaja, CEO of AllianceBlock. “We look forward to building an ecosystem where all participants have access to the best products while mitigating the ever-present risk of smart contract failure, hacks, and the resultant loss of collateral value.”
In 2020, as much as $200 million worth of digital assets was lost in attacks on major digital asset services. Bridge Mutual’s platform gives users the option to purchase and provide discretionary coverage, reducing investors’ risk of losing funds because of theft, exchange hacks, stablecoin price crashes, exploited contracts, and other vulnerabilities in digital assets.
By using Alliance Block’s multi-pair liquidity mining platform, Bridge Mutual will be able to offer BMI token holders instant liquidity through staking and high APY rewards for a variety of pairs. Once integrated into AllianceBlock’s P2P lending platform, Bridge mutual will be able to provide coverage to investors. Additionally, Bridge Mutual is working towards…