Ripple vs. SWIFT: The battle for the international money transfer

the Ripple vs. SWIFT. Ripple wants to conquer with its products xRapid and the XRP-Token is nothing Less than international payments. CEO Brad Garlinghouse said in the past that it was only a matter of time before you advance SWIFT. However, the Society for Worldwide Interbank Financial Telecommunication is also working on a own System: Global Payments Innovation, in short: GPI.

By Phillip Horch
11. February 2019BTC$3.629,12 -0.27% part Facebook Twitter LinkedIn xing mail

The Ripple rate of the currencies apart from Bitcoin and Ethereum, according to market capitalization in the first League of the Crypto. Although he fights on the price index is still Ethereum to place two, in the crypto-Ecosystem, however, quite a name. Recently about Binance, one of the largest Bitcoin exchanges in the world, announced their interest in the future, the technology of Ripple in your System include. This includes xRapid, a System that is intended to serve as a payment platform for international money transfer. The XRP-Token, crypto-currency to the System, serves as a bridge currency to ensure liquidity. With this technological infrastructure, Ripple wants to take on the long term, the international money transfer and, therefore, SWIFT to make the rank.

SWIFT vs. Ripple: International money transfer in real time?

SWIFT is on the other side for the Society for Worldwide Interbank Financial Telecommunication, and has since the founding in 1973 of the international money transfer firm grip. It sets the Standard for the world's more than 10,000 banks, in the case of the national IBAN formats registered. She manages the transactions between payment service providers via SWIFT messages, standardizes the exchange between financial institutions and management provider for SEPA credit Transfers. SWIFT manages the exchange of messages, but not the processing of the payments.

Ripple competes against SWIFT, mainly to cross-border payments between different banks in a matter of seconds. In addition, the company relies on the Distributed Ledger technology. Cross-border payments were for a long time very slowly, which was apparently partly due to the fact that the monopoly position of SWIFT has been attacked. So there was no need for Innovation. to work

Global Payments Innovation (GPI) and the Central Cloud Server

However, with the growing acceptance of Crypto and the pressure that comes allegedly from Ripples, also began to SWIFT, to find a solution to Global Payments Innovation:, in short: GPI. To international Standards, contains a GPI, a Cloud-based payment tracker, a members directory and a Service-Level Agreement (SLA), that is, an interface between the Customer and service provider for recurring services. It is all about: transparency.

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This payment tracker allows you to now apparently, the tracking of international payments in real time. Ultimately, then, exactly is the Use Case of Ripple. How SWIFT are now already using 100 financial institutions around the globe, the Global Payments Innovation. The main difference to Ripple: GPI uses a Cloud solution, i.e. a group of servers under the control of an Individual: a centralised System.

Ripple, xRapid and the Distributed Ledger

XRapid works as a public Distributed Ledger (strictly no Blockchain). This can ultimately ensure that you need no Central processor. Transactions handles xRapid on a decentralised basis. The need for Central institutions, such as SWIFT. The Problem is that SWIFT uses the default, which is ultimately adapted to the regulation of individual States. Ripple, however, has according to own statements, but also 100 banks and payment providers on your side.

Also xRapid can offer full transparency. The technological design of the Ledger allows it, accordingly, any transactions to keep track of. Recall that Bitcoin is anonymous, as is often falsely claimed, but a pseudonym. Ripple promises to be at least transparency:

payments must be made directly, 24/7. With a real-time confirmation of inputs and the safety and transparency of the [...] fees, which are set before the transaction is traced.

But to be able to actually accomplish, is SWIFT Ripple ahead of miles. As for the international enforcement of DLT-based international payment transactions in Compliance with regulatory guidelines (for the most part). Thus, the distribution of the Global Payments Innovation for SWIFT (yet?) much easier.

Because, according to its own information, GPI has found, according to SWIFT already, some of the spread. So 50 percent of the GPI to be confirmed-payments within 30 minutes. These range between 220 different countries, the company also handles daily more than 100 billion US dollars.

Read also: The Ripple-Deals: More than 200 banks & payment service providers to decide for Ripple

For comparison: According to the XRPcharts the daily transaction volume, so the total estimated is due to Ripple moving capital, at 0.5 billion US dollars. In view of the moving volume, SWIFT has clearly the nose in front. Ripple, however, is significantly faster. According to Ripple, the confirmation time for transactions in the range of Seconds.

Ripple vs. SWIFT: A conclusion

SWIFT has to Ripple a clear advantage: It is well established, has many more partners and already complies with the legal provisions of States to international payments, as a rule, handle compliant. However, SWIFT centralized Cloud Server is working, while Ripple uses a distributed processing about the distributed Ledger. While SWIFT pretends to be, to payments in real time check, it currently appears to be a half-hour. Ripple sent, however, his XRP within seconds. This Ripple has to do far less to The company, under CEO Brad Garlinghouse handles daily 0.5 percent of the volume, that creates the Society for Worldwide Interbank Financial Telecommunication.

ultimately, It will be mainly a question of adaptation and regulation, which will specify the direction of the fight. This is, however, likely never, because none of the companies will be retiring and the business is hanging on a nail. It is not a question of Either-Or.Ren, to run on a (unfried) Co-existence.

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