Ripple sees Swift's gpi as the "minimal improvement" of an old system
Ripple sees Swift's gpi as the "minimal improvement" of an old system !
By using its services (xCurrent or xRapid), Ripple can promise potential cost savings for banks and businesses. Other old systems such as e.g. Swift, created more than 50 years ago, has become obsolete, according to Ripple.
Swift was founded when the internet and breakthrough Blockchain technology did not exist, and probably no one thought that such innovations would hit the market in the near future.
A new service from Swift, the improved Swift's global payments innovation (gpi), has been tested and is now being rolled out to all 10,000 banks worldwide for improved cross-border payment processing.
Swift gpi meets the following requirements:
Make same day payments in many world currencies
Immediate availability of money on the customer accounts
Payment Tracking: It can be easily and transparently understood which cash flows have flowed. Especially useful in case of complaints
Increased data quality and security
Swift gpi has been able to accelerate transactions so that more than 50% of all transactions in less than 30 minutes and almost all transactions within 24 hours were in the target account.
Ripple's joint venture director, Emi Yoshikawa, said in an interview on June 27 at EmTech Hong Kong that Swift's gpi can not deliver the same performance and performance as Ripple's xCurrent and xRapid software solutions for businesses (freely translated):
Swift was built 40 or 50 years before the Internet was created. So your architecture is very old. They realize that this is a big problem and they see us as a big competitor. They are also trying to make a big improvement based on the existing architecture called Swift gpi. We consider it a marginal improvement to their existing architecture.
However, this does not solve the fundamental problem if all structures are improved. This is only possible through an innovation such as blockchain technology.
Ripple has suffered some heavy setbacks in the past as there are not many banks that are convinced of the technologies and only a marginal part actually use the native XRP token for cross-border payments.
Swift is not based on blockchain technology but is used by several thousand banks worldwide. Swift himself experimented with blockchain technology in April this year, but decided it was too early to support its own services. The project is still in its development phase.
Whether the Blockchaintechnologie actually someday completely transfer can take over or whether there will be a combination of the old and new system, remains to be seen for now.