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Ripple (XRP) or SWIFT, which of the two should be the adopted solution?

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There are plenty of reasons to understand SWIFT is nothing but an archaic platform that is actually out of date. In fact, with all of the blockchain-based solutions in existence, we have the perfect example of how cross-border payments should look like and function. And this is particularly important considering the fact that we’re living in times where the need of transacting from one currency to another is more than evident, and so it is that the current ‘solution’ is no longer useful.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) was created back in 1973 in Brussels, Belgium with the intention of serving as a platform to assist cross-border transactions and the exchange of currencies between different banks.

Truth to be told, this is a method that used to function back then, but in lights of the present conditions, it is no longer the best, in fact, it hasn’t changed that much since 1973, and this undoubtedly represents a significant concern for those who need to transact in different currencies or banks.

In this matter, Ripple (XRP) is one of the blockchain-based solutions that has sounded the most to be the perfect candidate to replace SWIFT. Let’s see the main issues that the current platform hasn’t been able to solve and how Ripple (XRP) can resolve them with ease.

SWIFT inefficiencies

During the last couple of years SWIFT processes have notably demonstrated to be highly inefficient, and proof of that is the costs and the slowness that their transactions can incur in. In fact, recent declarations of an international business owner asseverate that Swift hasn’t changed at all in the last 25 years.

Owen is a businessman who owns a company that imports fashion accessories from Australia and China and sell them to different countries around the world. He has been working for the last 25 years in the business and because of the movement that its merchandise has, he usually needs to either receive or make payments in foreign currencies to complete a sale, and this without taking into account his great enthusiasm for traveling and the relations he has with countries such as Austria where his daughter lives.

In a recent email, Owen decided to tell everything about his frustrations with the current conditions of cross-border transactions by enlisting 4 cases of his most disappointing experiences in a message he sent to the owner of a Youtube channel named “Esoteric Trading Solutions teaching Crypto markets.”

Like this, the influencer uploaded a video in which she speaks about the 4 cases and the way she thinks this may be resolved. The issues treated in the video and email, are the following:

  • Case 1: Owen made a USD transfer from his HSBC account in the USA to another HSBC account in China, but even when the operation involved the same currency and bank, still transaction lasted four business days.
  • Case 2: A transfer made from Australia to Switzerland with the same currency (AUD), besides lasting four days as well it also took 5% of commission for an exchange fee of conversion that the bank applied to transform AUD to CHF and then back to AUD in the Swiss account. After complaining Owen received his money back, but two weeks later.
  • Case 3: A third experience involved a high amount of USD sent to China on an HSBC transfer. In this case, the platform didn’t allow to put the full name of the account holder because it was too long, but Owen sends it anyway because only a letter was missing at the end. As a result, the payment was rejected, and the funds were retained for 5 business days during which the bank used them as wanted. Transactions lasted then nine days (rejected transfer + accepted transfer).
  • Case 4: A transfer from New Zealand to Australia from the same bank but different currencies took 7 days even to give Owen the possibility of making the online transaction, and then, 4 days more in order to make the transfer, and the worst of all is that they converted the funds with a very different rate than the actual.

Ripple solutions

Through xRapid, Ripple carries its XRP token to source liquidity and provide a solution for all of the current problems that the financial sector has proven to have. In fact, a transaction only takes 3 seconds to complete, no matter the destination of the funds or the origins; and additionally, it charges almost zero fees per transaction.

Ripple Labs has associated already with at least 100 bank institutions to collaborate with solutions that improve the current conditions. However, the sector is still a little bit reluctant about adopting xRapid as a solution to the issue.

When will the sector realize that Ripple (XRP) represents the best alternative remains a question, but as we all conclude, it’s for sure the best alternative to SWIFT right now.

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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.

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Blogs

How is the Crypto Market Changing?

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It has been around a month and a half since the start of 2019, and there are already some pretty obvious changes in the way the crypto market operates, especially when compared to the last year. Early 2018 was almost a complete opposite. The previous year started with cryptocurrencies at their strongest, only to see them crashing down after a few weeks. Back then, the ICO model was still quite strong, and so was the hype surrounding the crypto space. New investors kept entering the space, and new startups emerged with their tokens ready to be sold.

As the year progressed, things started to change. The prices continued to drop, the ICO model went down from around $1.4 billion in raised funds at the beginning of the year to only $100 million in the last month.

The ICO model lost investors’ trust, as many of the projects turned out to be either too weak to survive after the crypto winter struck, or scams which tricked investors out of their money and disappeared. Not to mention that the increase in ICOs popularity attracted the regulators who cracked down on them pretty hard, especially in the US.

With all of that happening, it is of a small surprise that the investors started giving up on ICOs, especially with the constant drops in prices which saw even the largest coins…

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Understanding the Uses of Different Types Of Cryptocurrencies

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Cryptocurrencies – a term which has become incredibly prominent in the mainstream media during recent years due to the proliferation of Bitcoin millionaires. As a result, the new form of currency has earned an almost infamous status. However, as with any major step forward, there is still much confusion regarding the use of cryptocurrencies, what different types of innovative electronic cash exist and what they might mean for the future.

We’re putting all of this to rest as we explain what each of the leading cryptocurrencies can do.

Bitcoin

The most popular form of cryptocurrency, Bitcoin was first thought up in 2008 by the elusive and still unknown creator, Satoshi Nakamoto, who published the whitepaper online.

It took almost a decade for the cryptocurrency to reach its peak, but in December 2017 a single Bitcoin roughly exchanged for the price of $17,000, meaning anyone who held a substantial amount of the electronic cash became significantly wealthy.

In its early years, the cryptocurrency was strictly used as an alternative for cash transactions, and predominantly for trading goods and services. However as it has increased in popularity, its range of uses has also widened, now deployed for a variety of purposes including acting as collateral for investments at merchant banks, a direct debit for subscriptions services and most notably for sports betting.

Ripple

Bitcoin’s closest source of competition, Ripple was founded…

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New DoJ Ruling May Cripple Gambling dApps

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A new decision made by the US Justice Department has expanded restrictions regarding online gambling in the US affecting gambling dApps. While the Federal Wire Act of 1961 prohibited online gambling regarding sports since 2011, the new decision expanded on this, and it now includes all forms of internet gambling. Unfortunately for many, this now also includes cryptocurrencies.

The new decision came due to considerable difficulties when it comes to guaranteeing that only interstate betting will take place and that payments will not be routed via different states.

The new announcement was explained in a 23-page-long opinion issued by the Department of Justice’s legal team, which pointed out that the 2011 decision misinterpreted the law. According to that decision, transferring funds was to be considered a violation, but data transfers were not included. By exploiting this oversight, it was possible for gamblers to turn to internet gambling. Unsurprisingly, many have realized this early on, including startups, as well as large, established firms. This, of course, also included cryptocurrency companies as well.

The new decision changes what is allowed online

The decision to include all forms of internet gambling is a massive hit in the…

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