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Ripple XRP vs. SWIFT – A rivalry that has barely started

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Ripple XRP SWIFT

Ever since cryptocurrencies appeared in the financial landscape, they have proven to be highly efficient instruments to transact with. An average operation with a cryptocurrency usually lasts just a few minutes, an issue that the banking sector has been definitely fighting against for so long, and that’s without including the extremely high fees the sector charges per transaction, another problem cryptocurrencies have managed to solve.

In this matter, one of the cryptocurrencies that have shown remarkable advances with respect to cross-border payments is without any doubt Ripple (XRP). Through Ripple Labs, the company has created a package of solutions integrated on products such as xCurrent and xRapid, products that attack specific problems of the industry such as privacy of the data, costs, speed, and liquidity.

Ripple has managed to collaborate with several bank institutions across the globe; is currently partnered with at least 100 banks, and the truth is, this seems to be just the beginning. Ripple has stated its next primary goal is that major bank entities would fully adopt their product xRapid at the end of the year, a fact that, of course, puts Swift, the current cross-border payment platform in use, in not the best position.

Let’s see how this rivalry goes!

The first touché of Ripple

Back in April, Ripple made an audacious move by partnering with one of the largest banks in the world, Banco de Santander. The agreement was to collaborate in the elaboration of a blockchain-based service that would allow the users of the bank in the UK, Spain, Poland, and Brazil to make transactions using different currencies.

The strategic alliance represented a breaking point for Swift as Banco de Santander is one of the major bank entities in the world. And if we count the signings the company is doing with financial institutions every day; the current payment platform has for sure everything to lose.

As a matter of fact, Ripple has managed to ally with at least 100 banks to the date, among we can find, of course, the mentioned Spain bank which now appears very happy with the results of the collaboration with Ripple.

Regarding that, the head of operations, technology, and innovation of the bank, Ed Metzger, stated the results were very positive, he said,

“We have had very positive feedback and good take-up. It gives the customer much more certainty over how much money will arrive in the destination account.”

The blockchain has demonstrated to be a much cheaper, quicker, and efficient technology when it comes to treating cross-border payments, so this can definitely mean a check warning for the correspondent banking system Swift.

The Swift’s Reply

As it was expected, Swift decided to counterattack and made some improves in its messaging platforms, at the time that started as well the testing of the blockchain technologies to give Ripple a taste of its own medicine.

However, as the test that involved 34 bank entities from all around the world concluded, it all appears like it would be tough to fulfill the scalability goals using a blockchain system, which proves, of course, the skepticism the company keeps regarding the cutting-edge technology.

Regarding this, the head of banking at Swift, Harry Newman, said that the,

“Blockchain technology is not straightforward to scale and it is not yet appropriate to do so”

He continued and commented that he understands the correspondent banking model is an old-fashioned invention of 1998, but when it comes to speed, Swift has already managed to do payments in just a matter of minutes using the Global Payment Innovation system.

Furthermore, he criticized the fact that Ripple is only being adopted in a merely way as banks have integrated only the solutions provided by one of the products of the company, xCurrent. He said,

“If you don’t have money on the blockchain you are just doing a different kind of messaging system for correspondent banking”

The main issue in the crypto sphere and its solution

As we know for a fact, the primary concern of the crypto community and the focus of many of the detractors of the sector focuses on the volatility cryptocurrencies have shown during its existence. In this matter, a more prominent commented solution has been the creation of the dubbed ‘stablecoins,’ an invention that may not be so far from its inception.

The idea is to build up a cryptocurrency token backed by fiat currencies deposited at central banks across the globe. As of the moment, Circle, the cryptocurrency, and payment group based in Boston have already started a project to create the USD coin, the first crypto of the ‘stablecoin’ type.

Although this project is very much unlikely to solve the situation between Ripple and Swift, it may offer a solution for one of the most significant issues of the industry.

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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 Pxhere.com

Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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