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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There are plenty of reasons to understand SWIFT is nothing but an archaic platform that is actually out of date.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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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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SonicX
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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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