Bitcoin, Crypto currency, Blockchain

Ripple competitor to Swift examines the use of the Blockchain for business model

6f68580a6fbf5b1edf0620d3a9d03f50 - Ripple competitor to Swift examines the use of the Blockchain for business model

Ripple competitor to Swift examines the use of the Blockchain for business model

Home News Ripple competitor to Swift examines the use of the Blockchain for business model

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Marcus Misiak –
31.01.2019

Swift, one of the largest payment networks in the world, is currently reviewing whether the Blockchain Startup, R3 is a synergetischt cooperation to come about. Thus, Ripple competitor dares to Swift in a new area of application, which is the basis for the American Startup Ripple Inc. .

Swift CEO Gottfried Leibbrandt sat on Wednesday in addition to Ripple CEO Brad Garlinghouse at the Paris Fintech Forum and presented its new framework for payment standards “Global Payments Innovation (GPI)”. Here, GPI is to be in the existing infrastructure of R3 integrated. Leibbrandt takes (freely translated):

We will announce tonight a Proof-of-Concept with the R3 Blockchain on Trade, in the case of a payment to the trading platform can be used and then seamlessly into the GPI flows. We examine the networking with a lot of things, and banks have always been a part of it.

To use in Proof-of-Concept plans Swift R3’s Corda Settler, the transactions between crypto currencies and digital Assets in a distributed Ledger to handle. Here, Corad currently uses the native crypto-currency, Ripple, XRP, as a first crypto-payment rail.

To use whether Swift is effectively transferred to the cryptographic aspects of Corda Settler stehr. Leibbrandt believes that real-time liquidity because of strong fluctuations in the crypto market is currently the biggest obstacle for banks, digital Assets like XRP over a large area (freely translated):

I think that the largest part of the value proposition of Ripple is the XRP the crypto-currency. There, we find that the banks are to convert the hesitant, the things currently in a crypto-currency, since the currencies fluctuate.

Ripple counters this Argument, however, with the note that the transactions are processed within seconds, and as a result, the volatility risk as very low. Garlinghouse describes that XRP is item a significantly safer TRANS than trditionelles Fiat money (freely translated):

I’ve heard people talk about volatility and I have the feeling that you have spread this false information. Mathematically, a lower volatility risk: in the case of an XRP transaction as in the case of a fiat transaction.

Garling house criticized the centralization of Swift, and referred to it as the greatest weakness in the banking sector. In this aspect, the Blockchain is the System is clearly superior, not least on the basis of a manipulation security and complete transparency of all processes (freely translated):

Decentralized systems are likely to become more with time, I think. Swift is now a unidirektives Messaging Framework. It is not a liquidity provider. When we think about a Internet of values, is a mixture of bi-directional Messaging Frameworks. If you want to, you can switch to a real-time Chat Protocol, coupled with real-time liquidity.

Swift provides worldwide and over 11,000 institutions, the largest Bank network in the world.

Featured Image: Immersion Imagery / Shutterstock

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