One of the primary use cases of cryptocurrencies and blockchains is to disrupt the existing banking network and create space for faster, hassle-free transactions. RippleNet is designed to offer these solutions, working in collaboration with banks and other financial institutions and improving their cross-border settlements.
An XRP supporter is now explaining how the blockchain system could be a strong alternative to the current SWIFT banking system that enables international transactions for banks.
Could Government Organizations Be Considering RippleNet?
According to Twitter user @Hodor, who has been a longtime supporter of Ripple’s XRP cryptocurrency, the Financial Stability Board (FSB), a G20 sub-organization, could be bullish on cryptocurrencies. Hodor mentioned a report by FSB that suggests that cryptocurrencies “may become an option where current payment or banking services are less convenient or are slow and/or expensive.” In a blog post, the user suggests that the organization monitoring global financial policy may believe that cryptocurrencies may become a preferred option for cross-border transactions.
In its report, the FSB suggests that cross-border remittance payments attract a very high cost. It also suggests that it is yet to be seen if crypto assets will be used “as an alternative to traditional … banking services.” Hodor goes on to write that the FSB correctly identified the use case for cross-border value transfer as providing “substantial value” for cryptographic assets, especially XRP.
The European Parliament, meanwhile, has talked about small and medium-sized enterprises getting benefits from blockchain technology as it shuts the doors for financial intermediaries. The international organization said that blockchain could be helpful in reducing costs and increasing transaction transparency. The institution believes that regulations for distributed ledger technology should be innovation-friendly and technology neutral.
Could RippleNet Replace Swift?
All the use cases mentioned fit perfectly with the RippleNet roadmap. SWIFT, the Belgium-based system that currently facilitates international transactions for banks, is successful but increases costs and transaction times. Ripple’s suite of products, on the other hand, could be helpful in reducing this system’s problems. RippleNet may not just complement but replace SWIFT as well.
Currently, the company is busy in perfecting its suite, which includes xRapid, xCurrent, and xVia. It has partnered with more than 120 financial institutions across the world and even facilitated cross-border transactions for migrant workers in Asia. SWIFT specializes in securely transporting financial messages but doesn’t assist in fund movements. RippleNet could change this system, but it would take some time to achieve these objectives.
XRP Supports Claims That RippleNet Is a ‘Strong Alternative to SWIFT’ was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.